After being targeted by a US short-seller, the billionaire Gautam Adani-owned Adani Group declared its intention to prepay $130 million in debt to bolster investor confidence. To show its strong financial position, the company’s port business, Adani Ports and Special Economic Zone, last month announced a tender to repurchase up to $130 million in bonds due in July 2024, as well as comparable sums in each of the following four years.
APSEZ reported that a total principal amount of $412.7 million was validly tendered in a recent stock exchange filing. The business will accept such notes for acquisition subject to the proration factor of 34.2649% since the number of notes legally tendered and not withdrawn before the early tender The maximum acceptance amount of $130 million in total principle was exceeded before the deadline of May 8.
Since Hindenburg Research accused the Adani Group of accounting fraud and illegal use of offshore tax havens for stock manipulation in a study released on January 24, the value of the company’s shares has dropped. The group, though, has denied all charges.
The APSEZ 3.375% 2024 maturity dollar-denominated bond repurchase program came to an end on May 8. The company explained last month that the tender offer’s goals were to partially prepay the company’s upcoming debt maturities and to express its favorable financial situation. The company hired the following banks to serve as dealer managers for the offer: Barclays Bank, DBS Bank, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, MUFG Securities Asia Standard Chartered Bank, Singapore Branch, and SMBC Nikko Securities (Hong Kong).
The corporation will also pay accrued interest from the last interest payment date and afterward for any notes purchased in the tender offer in addition to the original amount. The company’s shares increased 0.85% to close at $690.85 on the BSE.
A multinational corporation with operations in numerous areas, such as ports, logistics, energy, and mining, The Adani Group is based in India. It has a market worth of more than $100 billion, making it one of the biggest firms in India.
The port component of the business, APSEZ, runs several ports in India and abroad, including Mundra Port, one of the biggest ports in the world by cargo volume. The business has been growing recently, purchasing several ports and terminals both domestically and abroad.
The organization has, however, come under fire in recent months, with numerous publications charging it with several irregularities. The Adani Group, which is building the Carmichael coal mine in Australia, was accused of environmental and human rights abuses in a report by The Guardian in addition to the Hindenburg study.
The Adani Group has refuted all accusations, claiming they are unfounded and driven by personal gain. Additionally, the group has filed a lawsuit against a few of the reports.
Overall, it appears that the Adani Group’s companies are solid and effectively run, and the firm is taking action to allay any investor concerns. Adani Ports and Special Economic Zone’s successful purchase of USD 130 million in debt is a sign of the company’s financial stability and liquidity position, and it should help to increase investor trust.