Skip to main content

Gautam Adani is seek­ing to sell a stake in his cement busi­ness.

 

Gautam Adani
Gautam Adani is seek­ing to sell a stake in his cement busi­ness worth about $450mn as part of efforts to reduce debt and restore investor con­fid­ence in his con­glom­er­ate. Three people with dir­ect know­ledge of the plan said that Adani this week made a formal request to inter­na­tional lenders to sell 4 to 5 per cent of Ambuja Cement. Adani, which owns 63 per cent of Ambuja Cement, has not dis­closed who would buy the stake, and the plan is not final­ised, it added. Adani’s move comes after a report by US short-seller Hinden­burg Research alleging fraud and stock mar­ket manip­u­la­tion wiped $145bn from the mar­ket value of the con­glom­er­ate’s lis­ted com­pan­ies.

An Adani Group spokes­per­son declined to com­ment. Adani has dis­missed con­cerns about its debt levels, point­ing out that it has never defaul­ted and that its oper­at­ing com­pan­ies make suf­fi­cient cash to cover interest pay­ments com­fort­ably. The con­glom­er­ate has paid off around $2bn worth of loans pledged against the shares of Adani’s lis­ted com­pan­ies since the short seller report in late Janu­ary. In addition, Adani has paid back a $500mn bridge loan, which was part of this pack­age and due to mature this month, two people famil­iar with the mat­ter said.

www.sba.tax

Labels:

Comments

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more

Tariffs on UK electric cars.

  The European Commission has confirmed that it will continue with its plan to impose tariffs on electric cars exported between the UK and EU starting next year. This is due to the "rules of origin" requirement that mandates EVs traded across the English Channel to have 60% of their battery and 45% of their parts sourced from the EU or UK or face a 10% tariff. A senior Commission official, Richard Szostak, recently informed parliamentarians from the UK and EU that the bloc's battery investment has significantly declined, making the tariffs necessary to encourage domestic production. In 2022, the EU's share of global investment in battery production shrank from 41% to only 2% after the US offered substantial subsidies through its Inflation Reduction Act. Starting in 2024, car manufacturers in the UK will need to have 22% of their sales come from zero-emission vehicles, which means they may need to import EVs from the continent to meet this requirement. If EU carmakers ...
Post a Comment
Read more