India’s NDTV Ltd saw its shares rise 5% to a 14-year high after Indian billionaire Gautam Adani’s conglomerate astounded the media group by saying it would acquire an almost 30% stake that could eventually lead to majority ownership.
NDTV has a market valuation of about $300 million. The media house watched its stock price surge far beyond the price that Adani said it would pay in a subsequent mandatory, which could take its stake over 55%.
Operating three channels in India, NDTV is often known for its critical stance regarding the Indian government’s policy and has been the target of income tax raids in recent years.
On the other hand, Adani is widely seen as close to Prime Minister Narendra Modi’s administration.
Suparna Singh, a senior NDTV official, told employees in a memo that the developments were utterly unexpected, and they were evaluating the next steps, many of which involve legal and regulatory processes.
In a statement, NDTV said Adani’s acquisition came without input, conversation, or consent from the NDTV founders Radhika and Prannoy Roy.
On Tuesday, a unit of Adani Group said it was exercising rights to acquire 29.18% of NDTV, triggering an open offer for another 26% in line with regulation.
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