Adani Group’s electricity unit Adani Power is pausing its planned $847M acquisition of coal-fired power plant DB Power.
DB Power owns a profitable coal-fired power plant in Chhattisgarh,
India. The planned acquisition was approved by India’s competition
regulator in September and originally given until October to complete
the deal.
- Both companies have extended
the deadline to close the deal four times, and on Wednesday, the latest
completion deadline, Adani Power said both firms would no longer be
seeking an extension.
- Last week, several Adani portfolio
companies said they would scale back their capital expenditure for the
financial year starting in April.
- Adani Group CFO Jugeshinder
Singh said the firm would not be making any new commitments until they
settle the current volatility period.
- Adani Group listed
companies have lost over $100B in market value since Jan. 24 after New
York-based short seller Hindenburg Research accused the conglomerate of
widespread fraud.
- Adani has strongly denied the allegations, calling them unresearched and malicious.
