Adani group has gained full control of news broadcaster NDTV after it acquired most of the stake of founders, Prannoy Roy and Radhika Roy, at a premium of almost 17 per cent over the rate it paid to minority shareholders of the firm.

The Adani Group now holds 64.71 per cent of New Delhi Television Ltd (NDTV), according to a regulatory filing late last week.

In a later development, NDTV said the Roys, along with four other directors, have resigned following the change of ownership, PTI and Reuters have reported.

The Adani group run by Asia’s richest man Gautam Adani used RRPR Holdings Private Limited, a company that was founded by the Roys and bear their initials in its name, to buy 27.26 per cent shares from Prannoy Roy and Radhika Roy at a price of Rs 342.65 per share, the regulatory filing said.

The price paid to Roys, which translates into Rs 602 crore, is almost 17 per cent premium to Rs 294 a share Adani Group had offered in an open offer to minority shareholders after taking control of RRPR Holdings.

Issuing a statement, Adani group said subsequent to change in control, the Board of NDTV has been further strengthened with the appointment of two more members – Sunil Kumar (former IAS officer) and Aman Kumar Singh (former civil servant).

These two appointments are in addition to the two Adani Group nominees: Sanjay Pugalia and Senthil Sinniah Chengalvarayan, who were appointed about 10 days back.

Commenting on the development Gautam Adani, Founder and Chairman of the Adani Group, said, “The Adani Group is privileged to further bolster NDTV with world-class infrastructure and talent and transform NDTV into a thriving multi-platform global news.”

Prannoy Roy held 15.94 per cent stake in NDTV, of which, he has sold all but 2.5 per cent stake. His wife Radhika Roy too sold all but 2.5 per cent of the 16.32 per cent stake she had in NDTV.

The Adani Group first acquired Vishvapradhan Commercial Private Limited, a little-known company that had given Rs 403 crore of an interest-free loan to RRPR Holdings in 2009-10 in exchange for warrants that allowed it to buy a stake in the newsgroup at any time. Adani group exercised those rights in August this year, which NDTV said was done without its consent.

By virtue of that, the Adani group took control of RRPR Holdings, which held a 29.18 per cent stake in NDTV. Thereafter, it made an open offer to acquire an additional 26 per cent 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 per cent shareholding.

Its stake through RRPR Holdings, open offer acquisition and buying 27.26 per cent from Roys have now given Adani group full control of NDTV with a 64.71 percent interest.

Market experts said Adani group paid Roys a higher price using a so-called inter-se transfer or share sale between entities linked to NDTV’s owners, which allows paying a premium. RRPR Holdings is an existing NDTV holding company that has bought shares from Roys.

Also, Adani group announced the share purchase from Roys a full 18 days after the close of the open offer – a timeframe that allows the takeover code not to kick in.

“RRPR, an indirect subsidiary of the company and member of the promoter/promoter group of NDTV, has acquired a 27.26 per cent equity stake in NDTV from Prannoy Roy and Radhika Roy by way of inter-se transfer…,” said a regulatory filing from Adani Enterprises.

On December 23, Prannoy Roy and Radhika Roy announced to sell 27.26 percent out of their remaining 32.26 per cent shareholding in the NDTV to the Adani Group.

“Vishvapradhan Commercial Private Limited (an indirect subsidiary of the company) holds an 8.27 per cent equity stake in NDTV and RRPR (prior to the present acquisition) held 29.18 per cent equity stake in NDTV. Consequent to the present acquisition, RRPR will hold 56.45 per cent,” the filing said.

“The acquisition was completed on December 30, 2022 on the block deal window of NSE,” it added.

NDTV will give the Adani Group a footprint in the media space as part of its broader diversification spree that has led to the expansion of the conglomerate beyond coal mining and ports into airports, data centres, cement and digital services.

In 2009, RRPR, or Radhika Roy Prannoy Roy Holdings Private Limited, took an interest-free loan of Rs 403 crore from a firm linked to Reliance Industries that eventually ended up with a closely-held firm Vishvapradhan Commercial Pvt Ltd (VCPL). The loan allowed VCPL to convert warrants into shares of RRPR Holdings, which held a 29.18 per cent stake in NDTV.

In August, Adani Group acquired VCPL and sought the conversion of warrants arising from unpaid loans into equity. NDTV initially said the move was “executed without any input from, conversation with, or consent of” its founders. But late last month, the conversion was agreed to, and Adani got 29.18 per cent shares of NDTV.

Pugalia, a former journalist, is the chief executive officer and editor-in-chief of media initiatives at Adani Group.