The Adani Group needs regulatory clearance to purchase a majority stake in the news network, New Delhi Television Ltd (NDTV) argued on Thursday as the broadcaster's founding promoters, Prannoy Roy and Radhika Roy, are looking to block the takeover bid by billionaire Gautam Adani.
As per the NDTV, the Securities and Exchange Board of India (SEBI) had barred the promoters from participating in capital market transactions in November 2020 for two years. As per this SEBI order, Vishvapradhan Commercial Private Limited can not enter into a deal with Adani till the market regulator permits it.
The statement came as Indian billionaire Gautam Adani made a bid by acquiring the entire stake of the broadcaster's major shareholder Vishvapradhan Commercial Private Limited.
In November 2020, the promoters were found guilty of insider trading in an investigation carried out by the SEBI.
The SEBI is analogous to the US Securities and Exchange Commission and is tasked with regulating India's securities and commodity market under the auspices of the Ministry of Finance.
"SEBI approval is necessary for the proposed Acquirer to secure 99.5% interests in the Promoter Group vehicle, since this would consequently lead to acquisition of voting rights in respect of 29.18% of the issued share capital of the Target Company (NDTV) held by the Promoter Group vehicle," the NDTV said.
On Tuesday, in addition to announcing the indirect acquisition of a 29.2 percent stake in the broadcaster, Adani group also offered to buy another 26% on the open market for $61.77 million.
NDTV had issued a statement on Tuesday, saying it was unaware of the transactions between its promoter and Adani Group.