Adani Enterprises to de-merge ports, power business; stock up 8 per cent

Gautam Adani-led Adani Enterprises has said its board has approved demerger of diversified businesses of ports, power, transmission and mining.

While the port business of the company will be demerged and vested in Adani Ports and SEZ, power utility will be merged into Adani Power.

The conglomerate with interests in coal mining, ports, logistics and power, said in a statement on Friday that it also plans to list Adani Transmissions, which will hold the transmission business, on the Bombay Stock Exchange.

In addition, the group will merge Adani Mining into the flagship Enterprises arm.

The restructuring is "expected to unlock value for the shareholders of Adani Enterprises by eliminating holding company discount," the company said.

Under the demerger, shareholders in the Enterprises group will get shares in Adani Ports and SEZ and Adani Power.

Adani Enterprises' stock closed up 7.8 per cent after having climbed more than 9 per cent on news of the demerger, its highest level for more than a year.

In a separate statement, Adani said its consolidated earnings before interest, tax, depreciation, and amortisation rose 57 per cent for the three months ending December 31 from a year earlier, to Rs 34 billion ($548.39 million).

(Reuters)