Adani group makes bid to take over NDTV

Tags: Economy/Finance

Adani Group's subsidiary AMG Media Networks has bought 29.1 percent indirect stake in New Delhi Television (NDTV).

IMPORTANT FACTS -

• Gautam Adani Group will also launch an open offer to buy more 26% stake.

• At the same time, in a notice sent to the Securities and Exchange Board (SEBI), NDTV said that the information about the acquisition has not been given to it.

• NDTV claimed that there was neither any discussion nor consent was taken with its founders – Prannoy Roy and Radhika Roy.

• The promoter entity RRPR Holding, at the centre of the acquisition, has been asked to transfer its shares to the acquirer Vishvapradhan Comm­ercial (VCPL) in two days.

• Adani Group has made an open offer for up to 26 per cent stake in NDTV at a price of Rs 294 per share.

What is a Takeover Bid ?

• A takeover bid is a type of corporate action in which one company makes an offer to buy another company.

• In a takeover bid, the company making the offer is known as the acquirer.

• The acquiring company typically provides cash, stock, or a combination of both in an effort to acquire the company.

• There are four types of takeover bids - friendly, hostile, reverse, or backflip.

ADDITIONAL INFORMATION -

What is Hostile bid ?

• A Hostile bid involves the bidding target going directly to the shareholders.

• Hostile bidders issue a tender offer, giving shareholders the opportunity to sell their stock to the acquirer at a substantial premium within a specified time frame.