ADANI: Indian conglomerate Adani Group unveiled a wide-ranging restructuring of its businesses in a move designed to make it easier for the group to expand its mining, ports and power operations.
Adani, which has revenues of more than $9.4 billion across its businesses, is now India’s largest private port operator and its biggest thermal power producer after a series of acquisitions over the last year from rivals.
Founder and Chairman Gautam Adani, 52, is a close associate of Prime Minister Narendra Modi and has enjoyed a rapid recent rise in Indian business circles, often associated with Modi.
Once the restructuring is complete, Adani Enterprises would be left to focus on mining operations, including a huge $7 billion project to develop the Carmichael coal mine in Australia.
The group’s port and power businesses would be spun out of the flagship Adani Enterprises into its listed power and port subsidiaries.
It also plans to list Adani Transmissions Limited as a separate entity on the Bombay Stock Exchange and merge Adani Mining Private Limited into the Enterprises holding company.
The restructuring, which has been approved by Adani’s board, “will simplify corporate structure and is a decisive step towards unlocking the potential value of the Adani Group Companies,” Chairman Gautam Adani said.
Shares in Adani Enterprises’ closed up 7.5 percent, after having climbed more than 9 percent on news of the demerger, its highest level since mid-2011 and valuing the company at around $11.2 billion.
