Adani Group Needs SEBI Approval For Acquisition, Says NDTV
Adani Group responded that regulatory restrictions imposed on NDTV do not affect the conglomerate's attempt to buy a major stake in the news network
New Delhi Television (NDTV), on Thursday, said that Adani Group needs the approval of Securities and Exchange Board (SEBI) to move forward with the acquisition of 29 per cent in the news network.
"Unless pending appeal proceedings were to successfully conclude prior, SEBI approval is necessary for the proposed Acquirer to secure 99.5 per cent interests in the Promoter Group vehicle, since this would consequently lead to acquisition of voting rights in respect of 29.18 per cent of the issued share capital of the Target Company (NDTV) held by the Promoter Group Vehicle," said NDTV in its disclosure to the stock exchange on Thursday.
As per reports, on Tuesday, Vishvapradhan Commercial Private Ltd (VCPL) along with AMG Media Networks and Adani Enterprises made an offer for NDTV under the SEBI Regulations, 2011. On November 27, 2020, the capital markets regulator, reportedly, had restrained NDTV promoters Prannoy Roy and Radhika Roy from dealing in securities directly or indirectly for two years for alleged insider trading.
As per recent reports, the Adani Group said on Tuesday its subsidiary AMG Media networks Ltd bought Vishvapradhan Commercial Pvt Ltd, which had lent INR 403.85 crore to RRPR Holding, a promoter group company of NDTV.
Sumit Agrawal, founder, Regstreet Law Advisors and former SEBI officer, in a news report quoted as saying, "There is going to be a debate between the parties if SEBI at all has the jurisdiction to get into contractual disputes. The Roys are likely to argue that the acquisition requires SEBI approval and relaxing the restraint against them. The Adani Group entities may argue that there is no subsisting right by Roys and the contract only requires performance now. Pure contractual disputes are outside the jurisdiction of SEBI. It is unlikely that SEBI will allow itself in the fray."
India's Adani Group, reportedly, said on Friday that regulatory restrictions imposed on New Delhi Television Ltd's founders do not affect the conglomerate's attempt to buy a major stake in the news network.