In order to match the price it paid the news broadcaster’s founders for their interest, Adani Enterprises announced on Tuesday that it would increase the amount it pays New Delhi Television Ltd. stockholders who submitted shares in the conglomerate’s open offer.
Adani Enterprises announced that it will pay investors who sold their NDTV shares in an open offer between November 22 and December 5 an additional Rs 48.65 per share, bringing the total payout to Rs 342.65 per share and matching what it paid NDTV founders Radhika and Prannoy Roy.
“The Securities and Exchange Board of India’s takeover guidelines are clear … Whatever price the acquiree gets, the minority shareholders also should get the same,” said Shriram Subramanian, Managing Director of InGovern Research Services, a corporate governance consulting company situated in Bengaluru.
Indian billionaire Gautam Adani now owns approximately 65 per cent of NDTV after obtaining a 27.26 per cent stake from the Roys last week, four months after initiating his buyout. Around 5.3 million shares were tendered in the open offer, at Rs 294 per share.
The husband-and-wife partnership that founded and owns NDTV stated that the takeover “was done without any participation from, communication with, or consent of the NDTV founders.” However, the founders only had a 5 per cent shareholding after selling the majority of their shares. With effect from December 30, the Roys and four additional independent directors resigned from the board as well.
Since Adani disclosed his acquisition aspirations in August, the stock price of NDTV has decreased by nearly 20%. They most recently gained 1.2% on Tuesday.