Receive free Adani Group updates
we will send you myFT Daily Digest Email summary of latest news adani group There is news every morning.
Abu Dhabi Group International Holdings will sell its stakes in two companies owned by Indian tycoon Gautam Adani, a blow to a business empire that is battling accusations of accounting fraud.
IHC announced in April 2022 that it would invest approximately $500 million each in renewable energy company Adani Green Energy and power company Adani Transmission, as well as a further $1 billion in the group’s flagship company, Adani Enterprises.
At the time, IHC CEO Syed Basar Shueb described the decision to support Adani as a “long-term investment in India”, while Adani Green executive director Sagar Adani hailed it as “the beginning of a broader relationship with Adani ”. Group and IHC”.
But the conglomerate, chaired by Sheikh Tahnoon bin Zayed al-Nahyan, one of the most powerful figures in the United Arab Emirates, said on Thursday that has found buyers for its shares in Adani Green and Transmission.
The decision to exit these companies reduced IHC’s exposure to Adani by 50% just 18 months after the investment.
IHC said the Adani sale was part of its “overall portfolio rebalancing strategy” and that it was finalizing regulatory filings to complete the deal with an unnamed buyer. The filing did not mention its stake in Adani Enterprises.
Eight months ago, U.S. short-seller Hindenburg Research accused the port that powers Adani Group of accounting fraud and stock market manipulation. Adani strongly denies the accusations.
The report triggered a sell-off that briefly wiped $150 billion off the market value of Adani’s 10 listed companies – shares of the groups have since pared some of the losses.
IHC did not disclose the price for which it sold its shares, but shares in Adani Transmission and Adani Green traded at well below the price at which the group purchased the companies, suggesting significant losses on both investments.
IHC owns 1.3% stake in Adani Green and 1.4% stake in Adani Transmission, which changed its name to Adani Energy Solutions this year, according to recent filings with Indian stock exchanges. French oil giant TotalEnergies owns 20% of Adani Green.
IHC did not immediately respond to a request for comment. Adani declined to comment.
Svlook
