New Delhi: Abu Dhabi’s International Holding Company (IHC), one of the largest sovereign funds that manages assets close to USD 100 billion, has reaffirmed its support to the Ad. Group, saying its outlook on investments in the group remains unchanged despite the US indictment of the conglomerate’s founder chairman Gautam Ad..
“Our partnership with the Ad. Group reflects our confidence in their contributions to the green energy and sustainability sectors,” IHC, one of Ad. Group’s key foreign investors, said in a statement.
“As with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged.” IHC had, in April 2022, invested about USD 500 million each in the renewables arm Ad. Green Energy and power company Ad. Transmission and a further USD 1 billion in the group’s flagship Ad. Enterprises. Later, it sold its 1.26 per cent stake in AGEL and 1.41 per cent in ATL, now called Ad. Energy Solutions Ltd, but hiked its stake in Ad. Enterprises Ltd to over 5 per cent.
The IHC statement comes soon after Ad. group emphasised that its chairman and his aides have not been charged under the US Foreign Corrupt Practices Act but faced three other charges, including securities and wire fraud that are punishable with monetary fines.
About The US Department Of Justice’s Indictment Filed In New York Court
The US Department of Justice’s (US DoJ) indictment filed in a New York Court last week does not mention Gautam Ad., founder chairman of the ports-to-energy conglomerate, his nephew Sagar or Vneet Jaain in any count related to conspiracy to violate the FCPA, AGEL – the firm at the heart of allegation of USD 265 million bribes allegedly being paid to Indian officials to secure solar power sale contracts that could benefit bring in USD 2 billion of profits over 20 year period to the firm, had said in a filing to the stock exchange.
The three, who are executives at AGEL, have only been charged with securities fraud conspiracy, wire fraud conspiracy, and securities fraud, the company said. In general, the penalties for such charges are less severe than bribery.
Gautam and Sagar also face a civil complaint over violation of sections of the Securities Act and aiding and abetting Ad. Green to violate the Act, the company had said.
Ad. Group last week denied all allegations as baseless and said it would seek legal recourse to defend itself.
Sri Lanka Ports Authority Expresses Its Confidence In Its Partnership With Ad.
Meanwhile, other international partners have also expressed their continued support. The Sri Lanka Ports Authority has expressed its ongoing confidence in its partnership with Ad., as the Indian group plays a vital role in expanding the country’s port infrastructure.
With USD 1 billion investment in the Colombo terminal, the project is poised to be the largest foreign direct investment in Sri Lanka’s port sector.
Sri Lanka Ports Authority chairman Admiral Sirimewan Ranasinghe (Retd) has reportedly stated that there are no discussions regarding the project’s cancellation. The project will be operational in the next couple of months.
Tanz.an Govt Reaffirms Its Commitment
Also, the Tanz.an government has reaffirmed its commitment to its agreements with Ad. Ports, as it feels that there are no concerns regarding the ongoing projects and that all contracts fully comply with Tanz.an law.
In May 2024, Tanz.a and Ad. Ports finalised a 30-year concession agreement to operate Container Terminal 2 at Dar es Salaam port.
Additionally, Ad. Ports acquired a 95 per cent stake in Tanz.a International Container Terminal Services, a state-owned entity, for USD 95 million.
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