Adani sells $1.87 billion stake in Group companies

These transactions took place through a series of block deals and involved a single group entity, SB Adani Family Trust, as the seller.

While the infrastructure conglomerate did not disclose the purpose of these transactions, sources in the know told ET that the funds will be used to repay chunks of promoter debt.

That would also include a $500-million loan tranche taken as part of the $4.5-billion acquisition financing of ACC and Ambuja Cements last year. This loan is up for repayment in March.

Agencies

Refinancing Debt
“We are delighted to complete this landmark transaction with GQG,” said Jugeshinder (Robbie) Singh, chief financial officer of Adani Group, in a statement. “We value GQG’s role as a strategic investor in our infrastructure and utility portfolio of sustainable energy, logistics and energy transition.”Adani Group initially planned to refinance the $500-million loan due in March via overseas bond issuances, but later shelved those plans to explore alternatives.

Sources said the conglomerate may also use the funds to prepay a $750-million mezzanine debt facility, which was also taken to help finance the purchase of the twin cement assets, billed as the biggest takeover in India’s building materials industry to date.

Exchange data showed GQG Partners bought 38.7 million shares, or 3.39% of the share capital of Adani Enterprises, valued at $660 million (Rs 5,460 crore). Shares were acquired at Rs 1,410.86 apiece, said the media statement. In Adani Ports, GQG Partners bought 88.6 million shares, or 4.1%, worth $ 640 million (Rs 5,282 crore). The US firm has bought a 2.55% stake in Adani Transmission for $230 million (Rs 1,898 crore) and 3.51% in Adani Green Energy for $340 million (Rs 2,806 crore).

Bulk deals data on the Bombay Stock Exchange and the National Stock Exchange showed SB Adani Family Trust sold the shares in all four companies in a series of secondary block trades.

‘Key Investor in Indian Infra’
Adani Group has been in discussions with potential investors to raise funds to refinance a part of its promoter debt, especially that taken against pledged shares of various group companies. The group also said it plans to replace portions of overseas listed bonds through private placements.

The group, which lost nearly $150 billion in market value since US short-seller Hindenburg Research accused it of ‘fraud’ and price ‘manipulation’ has seen a smart rebound lately in all its stocks. The conglomerate has persistently denied all charges of misgovernance and wrong-doing.

The investments have made GQG Partners a key investor in the development and growth of critical Indian infrastructure, the US firm said in a statement.

GQG Partners manages global and emerging market equities for institutions, advisors and individuals worldwide, and is listed on the Australian Securities Exchange and manages in excess of $92 billion in client assets.

“Gautam Adani is widely regarded as among the best entrepreneurs of his generation,” an Adani statement quoted Rajiv Jain, chairman and chief investment officer of GQG Partners, as saying. “Adani companies own and operate some of the largest and most important infrastructure assets throughout India and around the world… We believe that the long-term growth prospects for these companies are substantial, and we are pleased to be investing in companies that will help advance India’s economy and energy infrastructure, including their energy transition over the long run.”