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The Adani Group clarified on November 23 that it has not entered into any binding agreement to operate Kenya’s main airport, addressing reports about Kenya cancelling over $2.5 billion in deals after a US indictment related to bribery charges.
The group was responding to inquiries regarding news that Kenyan President William Ruto had ordered the cancellation of a procurement process, which was expected to award control of the country’s main airport to the Adani Group, following the indictment of its founder in the US.
Regarding the agreement signed last month to build and operate key electricity transmission lines in Kenya for 30 years, the group stated that this project does not fall under the disclosure requirements set by SEBI (Securities and Exchange Board of India), and therefore, there is no need to disclose any cancellation.
Adani Enterprises Ltd, the flagship company of the group, which oversees its airport business, confirmed that in August, it established a subsidiary in Kenya for the purpose of upgrading, modernising and managing airports.
“While the company was in discussion with the relevant authority for the said project, till date neither the company nor its subsidiaries (i) have been awarded any airport project in Kenya, or (ii) entered into any binding or definitive agreement in connection with any airport in Kenya,” the firm said.
The company neither confirmed nor denied the reports of Kenya cancelling the airport deal.
In a separate filing on October 9, Adani Energy Solutions Ltd, which operates power transmission lines, confirmed it was awarded the contract to build transmission lines in Kenya. Following this, it established a subsidiary in Kenya.
“We submit that the project does not fall within the ambit of item 4 of Para B, Part A, Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (Sebi Listing Regulations) which requires intimation to be made for any awarding, bagging/ receiving, amendment or termination of awarded/bagged orders/contracts other than in the ordinary course of business,” it said refusing to confirm or deny the cancellation.
The group added that if the project were to be cancelled, it would still not require disclosure under SEBI regulations.
Under the proposed airport deal, worth nearly $2 billion, the Adani Group was to add a second runway to Nairobi’s Jomo Kenyatta International Airport and upgrade the passenger terminal, in addition to operating the airport under a 30-year lease.
On November 21, President Ruto announced the cancellation of a separate 30-year, $736 million public-private partnership with an Adani Group company to build power transmission lines. This move followed the indictment of Gautam Adani, the founder and chairman of the group, and seven others by US authorities for allegedly paying $265 million in bribes to Indian officials in exchange for lucrative solar power supply contracts.
The Adani Group has denied the allegations, calling them baseless, and stated it would pursue all legal avenues.
The tender for operating Kenya’s main airport had been suspended after local protests. Additionally, Adani Energy Solutions Ltd had signed an agreement with Kenya Electricity Transmission Company Ltd (KETRACO) to develop three transmission lines and two substations last month.
(With inputs from PTI)
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