Hindenburg impact? Adani terminates deal to acquire Macquarie Asia's toll roads in AP, Gujarat for Rs 3,110 cr

Adani Road Transport, an arm of Adani Enterprises Ltd, on Thursday said the pact to purchase Macquarie Asia Infrastructure Fund's two stretches in Gujarat and Andhra Pradesh respectively, at a valuation of Rs 3,110 crore has been terminated.

On August 4, 2022 Adani's wholly-owned subsidiary said it would acquire Gujarat Road and Infrastructure Company Ltd (GRICL), currently owned 56.8 per cent by Macquarie Asia Infrastructure Fund, and Swarna Tollway Private Ltd (STPL). IL&FS owns a 26.8 per cent stake in GRICL and the Gujarat government owns the rest.

"Share Purchase Agreement dated 4th August, 2022 was executed amongst, Adani Road Transport Limited (Purchaser), MAIF Investments India PTE Limited and MAIF Investments India 3 PTE Limited (Sellers) in connection with proposed acquisition of 100% stake in Swarna Tollway Private Limited (“STPL”) and 56.8% stake in Gujarat Road and Infrastructure Company Limited (“GRICL”).

"We would like to inform that due to non-satisfaction of conditions to closing by the Seller within the agreed timeline under the Share Purchase Agreement, the Purchaser has decided to terminate the Share Purchase Agreement," said Adani Enterprises in a stock exchange filing on Thursday.

STPL has two stretches of toll roads in Andhra Pradesh -- Tada to Nellore on NH-16 and Nandigama to Ibrahimpatnam to Vijayawada on NH-65.

GRICL has two stretches of toll roads in Gujarat -- Ahmedabad to Mehsana on SH-41 and Vadodara to Halol on SH-87.

The development comes months after the the conglomerate's listed companies lost more than $100 billion in market value after US-based Hindenburg Research raised several governance concerns. Adani Group has denied any wrongdoing.

Economic Times reported in February that Adani Enterprises will not make fresh investments in new road projects till the current volatility around its share price, sparked by Hindenburg report, settles.

The embattled conglomerate will focus on completing existing projects, including Ganga Expressway, before embarking on any fresh capital expenditure, the report said.

Last month, Adani Enterprises said it will raise Rs 12,500 crore from share sale after withdrawing a Rs 20,000-crore FPO in February.