Billionaire Gautam Adani’s group on Saturday clarified on reports of Kenya cancelling more than $2.5 billion in deals after US indictment on bribery charges, saying it had not entered into any binding agreement to operate Kenya’s main airport.
Photograph: Amit Dave/Reuters
On the pact it had signed last month to build and operate key electricity transmission lines in Kenya for 30 years, the group said the project did not fall within the ambit of Sebi’s disclosure regulations, thereby not warranting any disclosure on its cancellation.
The group was responding to notices sent by stock exchanges to confirm reports of Kenyan President William Ruto ordering the cancellation of a procurement process that had been expected to award control of the country’s main airport after the conglomerate’s founder was indicted in the United States.
Adani Enterprises Ltd, the flagship firm of billionaire Gautam Adani’s group which houses its airport business, in a filing said it had in August this year incorporated a step-down subsidiary in Kenya to upgrade, modernise, and manage airports.
“While the company was in discussion with the relevant authority for the said project, till date neither the company nor its subsidiaries (i) have been awarded any airport project in Kenya, or (ii) entered into any binding or definitive agreement in connection with any airport in Kenya,” the firm said.
It did not confirm or deny reports of Kenya cancelling the airport deal.
Adani Energy Solutions Ltd, the firm that operates power transmission lines, in a separate filing said on October 9 it was awarded the project to construct transmission lines in Kenya.
Thereafter, it had incorporated a step-down subsidiary in Kenya.
“We submit that the project does not fall within the ambit of item 4 of Para B, Part A, Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (Sebi Listing Regulations) which requires intimation to be made for any awarding, bagging/ receiving, amendment or termination of awarded/bagged orders/contracts other than in the ordinary course of business,” it said refusing to confirm or deny the cancellation.
It went on to state that the award of the project was in the ordinary course of business of the company and its subsidiaries as they are engaged in the business of transmission and distribution of energy (among other things).
“Consequently, any cancellation of such Project will also not fall within the ambit of item 4 of Para B, Part A, Schedule III of the Sebi Listing Regulations,” it added.
Under the proposed airport deal worth nearly $2 billion, the conglomerate was to add a second runway at Jomo Kenyatta International Airport and upgrade the passenger terminal.
It was also to operate it on a 30-year lease.
Kenya’s President in his state of the nation address on Thursday also stated that he was cancelling a separate 30-year, $736-million public-private partnership that an Adani Group firm signed with the Ministry of Energy and Petroleum last month to construct power transmission lines.
That followed US authorities indicting group founder and chairman Gautam Adani and seven others for allegedly agreeing to pay $265 million to Indian officials to win lucrative solar power supply contracts.
The Adani Group denied the allegations as baseless and said it would seek “all possible legal recourse”.
The tender to operate Kenya’s main airport was put on hold following local protests.
Adani Energy Solutions Ltd had last month signed a project agreement with the Kenya Electricity Transmission Company Ltd (Ketraco) for developing three transmission lines and two substations.
