Can NDTV challenge Adani's hostile takeover in the court?
The Adani Group has replied to claims that it acquired a 29% stake in the company without permission made by New Delhi Television (NDTV) days earlier.
'We hereby inform you that VCPL has received a reply on behalf of RRPR to the warrant exercise notice dated August 23, 2022, for the exercise of the 1,990,000 warrants into the 1,990,000 equity shares of RRPR, the contents of which were also disclosed by NDTV in its disclosure dated August 24, 2022,' the company said in a statement on Friday, August 26. In order to exercise the conversion of warrants, RRPR (a promoter-owned firm that has a 29.18% share in NDTV) claimed that SEBI's formal consent was necessary; however, this assertion was rejected by SEBI (VCPL).
Prannoy Roy and Radhika Roy were subject to SEBI prohibitions against dealing in securities, according to information provided by VCPL. As a result, it argued that the regulatory body's prior written consent was not necessary. The statement said, 'Furthermore, on August 23, 2022, the amount of Rs. 1,99,00,000, being the amount payable for the 19,90,000 equity shares of RRPR pursuant to warrant exercise, has been paid by VCPL and received by RRPR. Further emphasis was placed on the fact that 'any subsequent attempt by RRPR to return the funds obtained or the original warrant certificate shall have no legal effect on the exercise of warrants by VCPL which has been completed.'
The claims made by RRPR in the letter are unfounded, legally untenable, and without substance, according to Adani Group, which dismissed the accusations made by NDTV. Therefore, RRPR is required to fulfil its duty right away and distribute the equity shares in accordance with the terms of the Warrant Exercise Notice.
The Claims of an Aggressive Takeover of NDTV.
When one firm buys another against the wishes of the company being bought, this is referred to as a 'hostile takeover.' It might take place if the purchasing corporation purchases shares directly from target company shareholders.
In this instance, the Roys claim that Adani Group did not consult them before making the open offer to purchase shares in order to create a majority ownership when a loan or other convertible debt instrument is converted to equity.
Adani's Reply To NDTV.
The Adani Group has responded to allegations made by New Delhi Television (NDTV) days earlier that it obtained a 29% stake in the business without authorization. The company released a statement on Friday, August 26 that read, “We hereby inform you that VCPL has received a reply on behalf of RRPR to the warrant exercise notice dated August 23, 2022, for the exercise of the 1,990,000 warrants into the 1,990,000 equity shares of RRPR, the contents of which were also disclosed by NDTV in its disclosure dated August 24, 2022.” RRPR (a promoter-owned company that has a 29.18% stake in NDTV) argued that SEBI's formal authorization was required in order to perform the conversion of warrants; however, SEBI rejected this argument (VCPL).
