Key Points of Cement Stake Sale:
- Gautam Adani plans to sell 4-5% stake in Ambuja Cement to international lenders for $450 million to reduce Adani Group’s debt.
- The move aims to restore investor confidence in the conglomerate, which has faced allegations from US short-seller Hindenburg Research.
- Adani Group has already repaid a $500-million bridge loan due on March 9.
- SBICap Trustee has reported that additional shares belonging to Adani Group companies have been pledged to banks.
- Investment firm GQG Partners has made the first major investment in the Adani Group since the Hindenburg Research report.
- The Adani Group has denied all allegations of wrongdoing made in the Hindenburg Research report.
- Last year, the group completed the acquisition of major Indian cement players, Ambuja Cements and ACC, for $10.5 billion.
- Adani Enterprises’ shares ended 2.90% lower at ₹1,896.45 on BSE on Friday, but the group stocks have recovered in the last few trading sessions.
Details of Cement Stake Sale:
Adani Group Chairperson, Gautam Adani, Plans to Sell Ambuja Cement Stake for $450 Million to Cut Debt
According to Financial Times, Gautam Adani, the Chairperson of Adani Group, is planning to sell 4-5% stake in Ambuja Cement for $450 million to international lenders. The move aims to reduce the conglomerate’s debt and restore investor confidence after facing allegations from US short-seller Hindenburg Research.
Adani Group has already repaid a $500-million bridge loan due on March 9, as reported by Bloomberg earlier this week. However, more shares belonging to some Adani Group companies have been encumbered, with SBICap Trustee stating that an additional 0.99% shares in Adani Green Energy Ltd. and 0.76% shares in Adani Transmission Ltd. were pledged to banks.
Investment firm GQG Partners has made the first major investment in the Adani Group since the Hindenburg Research report. GQG Partners bought a stake worth ₹15,446 crore in Adani Ports and Special Economic Zone Limited, Adani Green Energy Limited, Adani Transmission Limited, and Adani Enterprises Limited through block deals.
The Adani Group has denied all allegations of wrongdoing made in the Hindenburg Research report. Last year, the group completed the acquisition of major Indian cement players, Ambuja Cements and ACC, for $10.5 billion. The acquisition made the Adani Group the second largest cement player in India.
The deal was closed by Holcim on Friday by selling its entire stake in Ambuja Cements at ₹385 per share and in ACC at ₹2,300 per share. The cash proceeds aggregated to $6.4 billion for Holcim.
The Adani Enterprises’ shares ended 2.90% lower at ₹1,896.45 on BSE on Friday, but the group stocks have recovered in the last few trading sessions.
About Adani Enterprises:
Adani Enterprises Ltd is involved in a diverse range of economic sectors including mining, integrated resource management (IRM), infrastructure development such as airports, roads, rail/metro, water, data centers, solar manufacturing, agriculture, and defense.
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