'Move to control and stifle...' says Congress on Adani's NDTV stake purchase
Congress general secretary Jairam Ramesh tweeted, "The news of a deeply over-leveraged company owned by the PM's 'khaas dost' making a hostile takeover bid of a well-known TV news network is nothing but the concentration of economic and political power and a brazen move to control and stifle any semblance of an independent media,"
FollowWith billionaire Gautam Adani launching a hostile takeover bid of NDTV, the Congress charged on Wednesday that the bid by a company owned by Prime Minister Narendra Modi's 'khaas dost' (special friend) is a brazen attempt to control and stifle any semblance of independent media.
Adani launched a hostile takeover of NDTV with an indirect acquisition of a 29.18 per cent stake in the broadcaster, followed by an offer to buy out a further 26 per cent controlling stake.
The owners of New Delhi Television Ltd (NDTV), one of the country's most popular news channels, said they were completely unaware of the takeover until Tuesday and that it was carried out without their consent or discussion.
"The news of a deeply over-leveraged company owned by the PM's 'khaas dost' making a hostile takeover bid of a well-known TV news network is nothing but the concentration of economic and political power and a brazen move to control and stifle any semblance of an independent media," Congress general secretary Jairam Ramesh tweeted.
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"What remains a mystery is how the other member of the 'Humare Do' duo uses a loan given by one of the 'Humare Do' as a weapon to initiate the hostile takeover of the television network. Surprisingly, the group 'Vishvapradhan' is involved!" Ramesh tweeted.
An Adani Group company first acquired a company previously linked to rival billionaire Mukesh Ambani. The company loaned Rs 250 crore to NDTV in 2008-09, and the Adani group firm has now exercised the option to convert that debt into a 29.18 per cent stake in the news channel company.
Later, the group said in a statement that it had launched an open offer for another 26 per cent stake.
Adani Media Ventures Ltd (AMVL), the media arm of the group's flagship Adani Enterprises Ltd (AEL), acquired Quintillion Business Media Pvt Ltd last year (QBM).
"Vishvapradhan Commercial Pvt Ltd (VCPL), AMVL's wholly-owned subsidiary, holds warrants of RRPR Holding Pvt Ltd (RRPR), entitling it to a 99.9 per cent stake in RRPR. VCPL exercised warrants to acquire 99.5 per cent of RRPR," It stated.
Due to this acquisition, VCPL will gain control of RRPR. As per the satement, "RRPR is an NDTV promoter group company that owns 29.18 per cent of the company."
According to NDTV, the right was exercised by VCPL without input from the company or its founders.
"Without consulting NDTV or its founder-promoters, Vishvapradhan Commercial Private Limited (VCPL) served them with a notice stating that it (VCPL) has exercised its rights to acquire 99.50 per cent control of RRPR Holding Private Limited (RRPRH), the promoter-owned Company that owns 29.18 per cent of NDTV," it said.
NDTV operates three national news channels, NDTV 24x7, NDTV India, and NDTV Profit, a business news channel.
(With inputs from PTI)
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