Major fallout for Adani Group after US bribery indictment

Some nations and investors have either scrapped deals or halted investments in the Adani Group, after the United States indicted its billionaire chairman Gautam Adani for alleged bribery and fraud to win contracts for a group company, Adani Green Energy.

Adani Group has denied all the accusations as “baseless”, but its 10 listed entities have lost about US$ 33 billion in market value since the indictment, with Adani Green the hardest hit, losing about US$ 9.7 billion in market value.

Here are key details of the conglomerate’s stalled deals:French oil major Total Energies opens new tab will not make any more investments in the Adani Group, saying that it was not informed of the U.S. bribery charges against Gautam Adani.

Total has a 20% stake in Adani Green Energy opens new tab, putting its financial exposure in Adani firms at between $4 billion and $5 billion, Bernstein Research estimates.

Shares of Adani Green Energy plunged more than 11% after Total Energies’ statement, while those of Adani Total Gas (ADAG.NS), opens new tab, in which Total holds 37.4%, closed down 1.4%.

The U.S. International Development Finance Corp is reviewing the impact of the indictment against Gautam Adani on the agency’s plan to lend $550 million for a port development project in Sri Lanka partly owned by Adani Group.

Last November, the agency said it would provide financing for the port terminal project in the key city of Colombo.

Sri Lanka is studying the accusations against Adani Group and will consider all aspects of its projects in the country. The government is taking the concerns seriously but has made no final decision yet.

Kenya has cancelled a procurement process of more than US$2 billion that was expected to give control of its main airport to the Adani Group. The deal was to add a second runway at the Jomo Kenyatta international airport and upgrade the passenger terminal in exchange for a 30-year lease. (Foreign Media)

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