HomeBusinessCompaniesAdani clears $2.15-bn share-backed financing, $500-mn loan for Ambuja deal before deadline

Adani clears $2.15-bn share-backed financing, $500-mn loan for Ambuja deal before deadline

According to the firm, Adani Group has achieved full payback of $2.15 billion in margin-linked share-backed financing within the promised deadline of March 31, 2023.

Promoters have also paid off a $500 million loan for the Ambuja deal. “This is consistent with the promoters’ pledge to enhance equity contributions, and the promoters have already invested $2.6 billion out of the total purchase value of $6.6 billion for Ambuja and ACC,” said the Gautam Adani-led conglomerate.

Adani stated that the full prepayment plan was completed within six weeks, which “testifies the robust liquidity management and availability of capital at sponsor level, supporting the good capital prudence applied at all portfolio firms”.

The news follows a Financial Times story that Adani has made a formal request to global lenders to sell a 4-5 percent stake in Ambuja Cement for $450 million in order to reduce debt.

For $10.5 billion, Adani Group bought all of Holcim Group’s shares in two Indian companies, Ambuja Cements and ACC, from Holcim Group.This is also Adani’s biggest purchase to date, as well as India’s largest M&A deal in the infrastructure and materials market. Adani Group purchased Holcim’s 63.19 percent share in Ambuja Cements Ltd. and 54.53 percent ownership in ACC (of which 50.05 percent is owned via Ambuja Cements).

The ports-to-power conglomerate has been on a charm offensive to entice investors after the publication of a study by Hindenburg Research claiming stock manipulation and inappropriate use of offshore tax havens by the company, which it has denied.

But, Adani equities have recovered when GQG Partners Inc., an Australian-listed and Florida-based investment business, acquired shares in four of the group’s firms, including flagship firm Adani Enterprises, for Rs 15,446 crore.

GQG’s founder, Rajiv Jain, said on March 8 that the fund firm’s interest in the group will most likely increase.

Rajiv Jain, Chairman and CIO of GQG Partners, said,” 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.”

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