NDTV Takeover: Prannoy and Radhika Roy Will Sell Most of Their Shares

New Delhi: New Delhi Television Ltd (NDTV) founders Prannoy Roy and his wife Radhika Roy Friday announced that they will sell most of their remaining shares in the media organisation to AMG Media Network, owned by the Adani Group.

After 34 years of being the company's largest shareholder, the Roys have to let go of their positions at NDTV.

In a joint statement, the founders said they hoped that Gautam Adani, owner of AMG Media Network, will preserve what NDTV stands for. “Mr. Adani has invested in a brand that is synonymous with Trust, Credibility and Independence, and we are hopeful that he will preserve these values and expand upon them with all the responsibility required of a leader of an organisation of this nature,” the statement said.

The development comes after Adani Group became the majority shareholding of NDTV after first buying out a company backed by the founders and then acquiring more shares from the open market, the PTI reported.

The Roys are selling 27.26% of their remaining 32.26% shareholding in NDTV, according to stock exchange filings by the company. The sale will happen on or after December 30 in one or more tranches, the PTI report said.

The volume-weighted average market price of NDTV in the last 60 trading days is Rs 368.43, the stock exchange filing said.

Based on this price, the sale of 1.75 crore shares would fetch Roys up to Rs 647.6 crore, according to PTI.

The Adani Group Presently holds 37.44% stake in NDTV. After the acquisition of the founders' stake, Adani Group will control 69.71% of NDTV.

“The AMG Media Network, after the recent Open Offer, is now the single-largest shareholder in NDTV. Consequently, with mutual agreement we have decided to divest most of our shares in NDTV to the AMG Media network,” said the statement.

Prannoy and Radhika Roy added in their statement that their discussions with Adani have been constructive and “all the suggestions we made were accepted by him positively and with openness”.

“We look forward to watching NDTV and its outstanding reporters, producers and the entire extraordinary team at NDTV delivering the next phase of growth, one that India can be proud of,” they said, concluding the statement.

 Adani Group acquired a 29.18% stake in NDTV by buying a company backed by the television network's founders, Radhika Roy and Prannoy Roy. Thereafter, it made an open offer to acquire an additional 26% from public shareholders.

That open offer found investors willing to sell over 53 lakh shares of NDTV despite the deep discount on the stock's trading price. The stock tendered translated to an 8.26% shareholding, taking the total interest of Adani Group in NDTV to 37.44% - higher than the 32.26% holding of founders.

Consequently, NDTV offered two board positions to the Adani Group. On Friday, Adani Group nominees Sanjay Pugalia and Senthil Sinniah Chengalvarayan were approved as directors on the board.

By virtue of it being the largest shareholding of NDTV, the Adani Group also got the right to nominate a chairman of the news broadcaster. But NDTV in the filing did not mention it, according to PTI.

Currently, Prannoy Roy is the chairperson of NDTV while his wife Radhika Roy is an executive director.

Prannoy Roy owns a 15.94% stake and Radhika Roy another 16.32%.

Before Adani Group's hostile takeover, the promoters held 61.45% shares in NDTV. This included 1.88 crore shares or 29.18% held by RRPR Holding Pvt Ltd, the PTI reported.

RRPR Holding Pvt Ltd is the firm that Adani Group indirectly acquired in August, triggering an open offer to buy a further 26% of the media company.