Diversified conglomerate Adani Group announced a wide-ranging restructuring to streamline its various businesses and unlock their potential. The $9.4-billion Group said its holding company, Adani Enterprises Ltd, will demerge its port, power and transmission undertakings but absorb its wholly-owned mining subsidiary.
The Adani Enterprises board unanimously approved the scheme of demerger of the diversified businesses of the flagship company together with its subsidiaries Adani Ports and Special Economic Zone Ltd (APSEZL) and Adani Power Ltd, according to a company statement here.
The composite scheme of arrangement for the demerger of Adani Enterprises’ port undertaking into APSEZL and that of power undertaking into Adani Power also involves demerger of the flagship’s transmission undertaking into Adani Transmissions Ltd, a wholly-owned subsidiary of Adani Enterprises, and its subsequent listing.
Further, Adani Mining Private Ltd, a wholly-owned subsidiary of Adani Enterprises, is to be merged into it. The arrangement will simplify the corporate structure providing shareholders of Adani Enterprises direct shareholding in the respective operating companies, listing of one of the largest private sector transmission companies (Adani Transmissions) with over 5,000 circuit km of transmission lines across western, northern and central India and increase free float at Adani Power and APSEZL.
This transaction is expected to unlock value for the shareholders of Adani Enterprises by eliminating holding company discount. “The boards, including the independent directors of Adani Enterprises, APSEZL, and Adani Power, approved the proposed scheme and recommended the same in the interest of their respective shareholders,” the statement said.
Detailing the process involved in evolving the scheme of arrangement, the company said that BSR & Associates provided to the boards of Adani Enterprises, APSEZL and Adani Power their recommendation on the each of the Demerger Share Entitlement Ratio (DSER).
The scheme is subject to approvals by the BSE, the NSE, SEBI, simple majority of the shareholders of each of Adani Enterprises, Adani Power and APSEZL, besides the Gujarat High Court.