FILE PHOTO: The logo of the Adani Group is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave
Adani Group, controlled by Asia’s richest person Gautam Adani, acquired a 29.2% stake in news media firm, New Delhi Television Ltd. or NDTV, and offered to buy another 26% from the open market, as the conglomerate seeks to expand its footprint in India’s media sector.
Adani Enterprises Ltd.’s unit AMG Media Networks Ltd. bought Vishvapradhan Commercial Pvt. for 1.14 billion rupees ($14.3 million), giving it a 29.2% stake in New Delhi Television Ltd., according to a stock exchange filing Tuesday.
In line with local stock market regulations, Adani Group firms minutes later announced a 4.93 billion-rupee open offer for buying shares from other investors at 294 rupees per share -- a 20.5% discount to NDTV closing share price on the day.
This acquisition marked "a significant milestone” for AMG Media Networks that aims to "pave the path of new age media across platforms,” Sanjay Pugalia, the company’s chief executive officer said in a statement. "NDTV is the most suitable broadcast and digital platform to deliver on our vision.”
The group’s founder-billionaire Adani, with the world’s biggest wealth gain this year, built his empire on agri-trading and ports but has speedily diversified into airports, data centers, cement, renewable energy and now media. This breakneck growth, sometimes in unrelated sectors, is making some credit watchers wary about the group being too indebted and the management bandwidth getting too stretched across newer businesses.
Early this year, Adani Enterprises Ltd. established AMG Media Networks, an arm it said would be in the businesses, including publishing and broadcasting.
NDTV produces and broadcasts news in English and Hindi. In March, Adani Media Ventures Ltd. agreed to buy a stake in Quintillion Business Media Pvt.
The Adani group is exploring buying stakes in some local television and print news outlets, while a few have approached the conglomerate also to study potential deals, Bloomberg reported in May.
