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Adani stops 847mn deal.

 Gautam Adani’s elec­tri­city unit is halt­ing an $847mn acquis­i­tion of a coalfired power sta­tion in India

Adani building

in a sign that his busi­ness empire is slow­ing down spend­ing fol­low­ing a short seller attack. The Adani Group did not respond to a request for com­ment. Widely regarded as an ally of Nar­en­dra Modi, India’s prime min­is­ter, Adani presen­ted him­self as the archi­tect of logist­ics net­works and power gen­er­a­tion that formed the back­bone of India’s grow­ing eco­nomy. But a retrench­ment would mark a change in strategy for Adani, 60, who built his con­glom­er­ate dur­ing a debt­fuelled expan­sion, adding rev­en­ues by buy­ing or build­ing new projects ran­ging from solar power to air­ports.

Adani Power in August agreed to buy DB Power, a com­pany that owns a prof­it­able coalfired power plant in the Indian state of Chhat­tis­garh, and its par­ent com­pany Dilii­gent Power Private. In quarterly earn­ings announce­ments last week, sev­eral Adani port­fo­lio com­pan­ies said they would be scal­ing back cap­ital expendit­ure for the fin­an­cial year start­ing in April. «We will not make new com­mit­ments until we settle this volat­il­ity period,» said Adani Group chief fin­an­cial officer Juge­shinder Singh on an ana­lyst call.

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  1. Joseph17 February 2023 at 14:03

    I wonder what happened to stop this deal. Maybe there's more than meets the eye as Adani was on a shopping spree in the last few years. Maybe they discovered something they didn't like?

    ReplyDelete
    Replies
    1. Andrew17 February 2023 at 15:57

      Or it could be because of the recent scandals they are involved in. Maybe they need to regroup and think about what they can spend money on considering the current worldwide events.

      Delete

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