Adani Group denies entering into contract to operate Kenyan airport
The Adani Group has denied allegations that it had signed a binding agreement to operate Kenya's main airport. The clarification comes after reports of Kenya scrapping over $2.5 billion in contracts, after Adani's US indictment on bribery charges. The group was replying to queries from stock exchanges seeking confirmation on the reports.
Adani's response to Kenyan airport deal cancelation
Adani Enterprises Ltd, the flagship firm of the Adani Group which hosts its airport business, clarified in a filing that it had incorporated a subsidiary in Kenya earlier this year. This subsidiary was meant to upgrade and manage airports. However, the company said that neither it nor its subsidiaries have been awarded any airport project in Kenya or entered into any definitive agreement related to any Kenyan airport.
Adani Energy Solutions's stance on power transmission project
Separately, Adani Energy Solutions Ltd, another Adani Group firm that runs power transmission lines, said in a filing that it was awarded a project to build transmission lines in Kenya. Subsequently, it had set up a step-down subsidiary in the country.
Adani Group's stance on SEBI's disclosure regulations
Adani Energy Solutions clarified that the project did not come under SEBI's disclosure regulations, which mandate intimation for any awarding, bagging/receiving, amendment or termination of orders and contracts other than in the ordinary course of business. The firm said that the awarding of this project was part of its regular business operations, and any potential cancelation would also not come under these regulations.
Details of the proposed airport deal and power transmission project
The nearly $2 billion airport deal would have seen the Adani Group add a second runway at Jomo Kenyatta International Airport and upgrade its passenger terminal. The group was also tipped to operate it on a 30-year lease. Separately, an Adani Group firm had signed a 30-year, $736 million public-private partnership with Kenya's Ministry of Energy and Petroleum last month to construct power transmission lines.
