Adani Group Pre-Pays $200 Million Holcim Debt: Report

Adani Cement Industries has pre-paid $200 million last week helping it pare $1 billion loan taken from global banks to fund acquisition of Holcim's Indian assets Ambuja Cements and ACC, news agency Bloomberg reported citing people aware of the matter.

The pre-payment by Adani Group will help the conglomerate seek an extension of the debt taken to fund acquisition by three years, the report said. International banks had lent Adani $4.5 billion to finance the purchase of Holcim cement assets, with the mezzanine loan due for maturity in September 2024.

The Adani Group in September last year completed the acquisition of Ambuja Cements and ACC to become the country's second-largest cement player after Aditya Birla Group-backed Ultratech Cement. 

The acquisition was finalised after Adani Group, through its special purpose vehicle, Endeavour Trade and Investment Ltd, completed the transaction with Swiss firm Holcim and an open offer. 

The value of the Holcim stake and open offer consideration for Ambuja Cements and ACC is $6.50 billion, which made it largest ever acquisition by Adani Group. It was also India's largest ever merger and acquisition transaction in the infrastructure and materials space. 

Earlier this year in January, the US-based short seller Hindenburg Research accused Adani Group of pulling the largest con in corporate history and levelled allegations stock price manipulation and improper use of tax havens. 

The allegations were however denied by Adani Group in a 413 page response calling Hindenburg's allegations nothing but a lie, one that is an attack on not just Adani but also India.

The 413-pages long response begins by reading ‘a note of caution to our stakeholders.’ While referring to the Hindenburg Research report driven by “an ulterior motive,” Adani’s response goes on to add that the report has been released to “create a false market,” one that would allow the US-based firm to make financial gains.