Billionaire Gautam Adani-led Adani Group seeks to sell 4%-5% stake in Ambuja Cements Ltd for over $450 million to reduce debt, said a report on Friday.
Quoting sources, Financial Times reported Adani on Thursday made a formal request to international lenders to sell 4% to 5% stake in Ambuja Cements as part of debt reduction to restore investor confidence in the conglomerate reeling from allegations made by US short seller Hindenburg Research.
If it went ahead, the Ambuja stake sale would mark the besieged conglomerate’s first asset sale as it works to reduce its debt.
Earlier this week, Bloomberg reported that Adani Group has repaid a $500-million bridge loan that was due on March 9.
Last month, Economic Times reported that Adani was in talks to repay a $500-million bridge loan facility, maturing in March, it had taken to buy controlling stakes in cement companies ACC Ltd and Ambuja Cements Ltd.
To finance the purchase of Holcim Ltd’s cement assets, a consortium of 14 international banks provided $4.5 billion in financing, led by Barclays, Standard Chartered and Deutsche Bank.
Last year, in a $10.5-billion deal, Adani Group picked up Holcim Group’s entire stake in two Indian firms — Ambuja Cements and ACC. This is also the largest-ever acquisition by Adani, and India’s largest-ever M&A transaction in the infrastructure and materials space. Holcim sold its 63.19% stake in Ambuja Cements Ltd and 54.53% stake in ACC (of which 50.05% stake is held through Ambuja Cements) to Adani Group.
Shares of the Adani Group’s seven listed companies have seen around $130 billion wiped away from their market valuation after Hindenburg Research’s report alleged stock manipulation and improper use of tax havens, and flagged “substantial” debt levels, which the group has denied.
Adani stocks have rebounded after Australia-listed and Florida-based, Australia-listed boutique investment firm GQG Partners Inc picked up stakes worth Rs 15,446 crore in four Adani Group firms, including flagship arm Adani Enterprises Ltd.