Billionaire Gautam Adani-led Adani Group seeks to sell 4 to 5 percent stake in Ambuja Cements Ltd for over USD 450 million to reduce debt, said a report on Friday. Gautam Adani is reportedly seeking to sell a stake in his cement business worth about USD 450mn, as part of efforts to reduce debt and restore investor confidence in his company
Three people with direct knowledge of the plan said that Adani on Thursday 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. A fourth person confirmed the talks without disclosing details.
According to the FT report, Adani’s move to sell down its Ambuja holding comes after a report by US short seller Hindenburg Research alleging fraud and stock market manipulation wiped USD 145bn from the market value of the conglomerate’s listed companies. The group has denied the allegations and has said servicing its USD 24bn of net debt will not be an issue.
If it went ahead, the Ambuja stake sale would mark the group’s first asset sale as it works to reduce its debt. An Adani Group spokesperson declined to comment. Ambuja shares closed at Rs384.3 on Thursday, which would have made a 5 percent stake worth about USD 465mn. Adani has dismissed concerns about its debt levels, pointing out that it has never defaulted and that its operating companies make sufficient cash to comfortably cover interest payments.
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