Adani group makes bid to take over NDTV
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.
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