Slamming the Narendra Modi-led government, the Congress on Wednesday, 24 August, alleged that PM Modi's 'special friend' Gautam Adani's 'hostile' takeover of NDTV "is a brazen move to control and stifle any semblance of an independent media."
"The news of a malicious takeover of a well-known TV news network by a company heavily indebted to the prime minister's 'special friend' is a concentration of economic and political power. This is a shameless move to control and suppress the independent media in any form," Congress leader Jairam Ramesh tweeted in Hindi.
Hours after AMG Media Networks Limited (AMNL), a wholly owned subsidiary of Adani Enterprises, indirectly acquired a 29.18 percent stake in New Delhi Television Ltd (NDTV) on Tuesday, the TV news channel said in a statement that the "exercise of rights by Vishvapradhan Commercial Private Limited (VCPL) was executed without any input from, conversation with, or consent of the NDTV founders."
Adani Launches a 'Hostile Takeover' of NDTV
In its takeover of NDTV, Adani first initiated an indirect aquisition of 29.18 percent stake in the broadcaster, followed by an open offer to buy out another 26 percent of the controlling stake of the company.
In its response, NDTV said that "without any discussion" with it, the VCPL had served a notice to them stating that it has exercised its rights to acquire 99.50 percent control of RRPR Holding Private Limited (RRPRH), the company that owns 29.18 percent of NDTV.
Such an acquisition will lead to VCPL acquiring control over RRPR.
"The notice from VCPL is based on a loan agreement it entered with NDTV founders Radhika and Prannoy Roy in 2009-10. The notice states that VCPL has exercised its option to convert 19,90,000 warrants into equity shares of RRPRH at Rs 10/- per share, and that a total of Rs 1.99 crore has been transferred to RRPRH," a statement from NDTV said.
On Tuesday, the RRPRH was told to transfer all its equity shares to VCPL within two days.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)