- Adani Power will scrap its plans to buy a coal plant in central India for $850 million, according to a report.
- Adani and DB Power agreed to drop the deal after a deadline to meet the required conditions expired, Bloomberg reported, citing people familiar with the matter.
- This comes in the wake of a scathing short-seller report that triggered a rout in the Indian conglomerate’s stocks.
The embattled Adani Group has scrapped its plans to buy a coal plant in central India for $850 million, according to a report by Bloomberg, as the conglomerate reels from a scathing short-seller report that triggered a stock-market storm.
Adani Power, a group company, and DB Power agreed to drop the deal after a deadline to meet the required conditions expired Wednesday, Bloomberg reported, citing people familiar with the matter.
“We wish to inform that the long stop date under the memorandum of understanding dated August 18, 2022, has expired,” Adani Power said in a regulatory filing on Wednesday. The company didn’t specify whether the agreement would be renegotiated or the date would be extended if at all.
The acquisition deal was signed in August last year and the transaction was set to take place at the end of October, but its deadline was extended four times since then until its eventual expiration this week, according to media outlets.
This development comes in the wake of US short seller Hindenburg Research’s bombshell report published on January 24 that accused the Adani Group of “pulling the largest con in corporate history” by engaging in stock manipulation and accounting fraud.
Although the Indian conglomerate has denied the claims, the stock turmoil that followed has wiped out the group’s market valuation by $120 billion.