NDTV, the first 24-hour News Channel in India, with nearly four decades of presence in Television Journalism, is about to get new management.
Gautam Adani, Chairman of Adani Group – a multinational conglomerate, could be taking over the reins of NDTV soon, pending some procedures.
The Takeover
The takeover process that began in August this year is not a direct sale but an indirect takeover. And this is how it happened.
A company called ‘Vishvapradhan Commercial Pvt Ltd’ (VCPL) issued an interest-free loan of Rs. 403.85 Cr to NDTV promoters ‘Radhika Roy Prannoy Roy Holding Pvt Ltd’ (RRPRH).
If the loan is unpaid, VCPL could convert the debt into a 99.9 percent stake in RRPRH.
Adani Group acquired this VCPL and converted the debt into a 29.18 percent stake in NDTV. It is now set to buy an additional 26 percent stake via an open offer. The proposal to buy 1.67 Cr equity shares could cost nearly 500 Cr.
Resignations begin
First, the company founders, Prannoy Roy and Radhika Roy, resigned as directors of RRPR Holding Pvt Ltd.
The next day, Ravish Kumar, the Executive Editor at NDTV India, resigned.
NDTV India is a Hindi News channel, and NDTV 24X7 is an English News Channel.