Never entered into pact to operate airport in Kenya: Adani
In response to allegations that Kenya had cancelled over USD 2.5 billion in deals following a US indictment on bribery charges, billionaire Gautam Adani's group clarified on Saturday that it had not signed a legally binding contract to operate Kenya's main airport.
The group said that the agreement it had signed last month for the building and operation of major power transmission lines in Kenya for 30 years did not qualify for any disclosure since it did not fall within Sebi's disclosure guidelines.
The group was responding to notices sent by stock exchanges to confirm reports of Kenyan President William Ruto ordering the cancellation of a procurement process that had been expected to award control of the country's main airport after the conglomerate's founder was indicted in the United States.
Adani Enterprises Ltd, the flagship firm of billionaire Gautam Adani's group which houses its airport business, in a filing said it had in August this year incorporated a step-down subsidiary in Kenya to upgrade, modernise, and manage 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.
It did not confirm or deny reports of Kenya cancelling the airport deal.
Adani Energy Solutions Ltd, the firm that operates power transmission lines, in a separate filing said on October 9 it was awarded the project to construct transmission lines in Kenya. Thereafter, it had incorporated a step-down 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.
It went on to state that the award of the project was in the ordinary course of business of the company and its subsidiaries as they are engaged in the business of transmission and distribution of energy (among other things).
"Consequently, any cancellation of such Project will also not fall within the ambit of item 4 of Para B, Part A, Schedule III of the Sebi Listing Regulations," it added.
Under the proposed airport deal worth nearly USD 2 billion, the conglomerate was to add a second runway at Jomo Kenyatta International Airport and upgrade the passenger terminal. It was also to operate it on a 30-year lease.
Kenya's President in his state of the nation address on Thursday also stated that he was cancelling a separate 30-year, USD 736-million public-private partnership that an Adani Group firm signed with the Ministry of Energy and Petroleum last month to construct power transmission lines.
That came after US authorities indicted founder and Chairman Gautam Adani and seven others for allegedly arranging to pay USD 265 million to Indian officials in exchange for lucrative solar power supply contracts.
The Adani Group disputed the charges and stated that it will pursue "all possible legal recourse".
Following local protests, the tender to run Kenya's principal airport has been put on hold.
Adani Energy Solutions Ltd last month inked a project agreement with Kenya Electricity Transmission Company Ltd (Ketraco) to build three transmission lines and two substations.
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