NDTV takeover bid forged way back in 2009
With 29% stake in NDTV, promoters Radhika Roy, Prannoy Roy (RRPR) availed of Rs400-cr loan from VCPL and issued hajaar warrants to it; Adani Group on Tuesday exercised its rights to convert those warrants into shares
image for illustrative purpose
Playbook similar to Network 18 takeover
- Promoter of media co has way too much debt, needs bailout
- Promoter co (which owns the promoter shares) issues hajaar warrants
- Upon conversion of warrants,lender will get 99.5% of promoters' holding
Hyderabad: Promoters (RRPR) of NDTV took Rs400 crore as a loan from Vishvapradhan Commercial Pvt Ltd (VCPL) in 2009 for repaying an existing loan from ICICI. Against loan, VCPL, which is now part of Adani Group, got hajaar warrants, which if they converted, would give them more than 99.5 per cent of holding by RRPR,which stands for Radhika Roy, Prannoy Roy, who own 29 per cent in NDTV.
On Tuesday, VCPL converted their warrants to shares. Effectively they now indirectly own 29 per cent of NDTV. And Adani Group firms made an open offer for another 26 per cent.
VCPL didn't pay to convert the warrants, today. They have already paid in 2009. They get to own shares of NDTV now, and the Rs294open offer price is calculate as per Sebi regulation.
NDTV shares on Wednesday rose by Rs18.30 or five per cent and closed at Rs384.50 on BSE.
