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Adanis eyeing up to $1B through stake sale in two group firms

08 June, 2012

The Adani Group is eyeing as much as $1 billion through sale of minority stake in two public-listed group firms. The group, which has interests in energy, infrastructure and commodities, is looking to sell around 2.5 per cent stake in Adani Ports & Special Economic Zone and 5 per cent in Adani Enterprises.

The group is hoping to complete the fundraising by June 2013, an unnamed group executive official told news agency PTI at an investor conference, organised by Morgan Stanley.

Although he did not specify the route through which the group might be raising funds, it could be through PE funding. Adanis had earlier raised PE funding for some of the group firms, including Adani Power where 3i is an investor.

The money proposed to be raised would be used to part-fund $4.2 billion Capex on the Australia coal mine and creation of associated infrastructure, according to the executive.

The value of 2.5 per cent stake in Adani Ports currently stands at Rs 623 crore while 5 per cent stake in Adani Enterprises is worth Rs 1,313 crore. This means at the current market price, the group will be able to raise only $350 million from the planned stake sale, as per VCCircle estimates.

As per the PTI report, the group’s coal mine at the Galilee basin in Australia’s Queensland is expected to begin production by January 2015 and the company hopes to start producing from the Indonesian coal mine by the first week of July this year.

Last August, Adani Enterprises struck one of the single biggest acquisitions in overseas natural resources assets in a $2.7 billion deal for Galilee.

Earlier this year, Adanis said that the group would pump in around $6 billion for international expansion by 2015, led by its Australian mining and related assets.


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Adanis eyeing up to $1B through stake sale in two group firms

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