 "adani")
Adani (Photo: Shutterstock)
Adani Enterprises, the flagship company of the Adani group, has set up a subsidiary in Kenya as it intensifies efforts to take over Jomo Kenyatta International Airport in Nairobi.
Gautam Adani’s flagship company has established a wholly-owned step down subsidiary – Airports Infrastructure PLC (AIP) in Kenya, according to a statement filed by Adani Enterprises to the stock exchanges.
AIP is incorporated to take over, operate, maintain, develop, design, construct, upgrade, modernise and manage airports, the company said in a statement.
AIP, owned by Global Airports Operator LLC, is based in Abu Dhabi.
Industry sources said the group aims to take over the management of Nairobi’s airport and talks are currently on with Kenyan government officials for investment purposes.
While the quantum of the investment in Nairobi airport is not disclosed, sources said if due diligence is successful, the Indian company may invest up to $810 million.
An email sent to the Adani group spokesperson did not elicit any response.
If successful, Kenya will be the first international foray by the Adani group in the airport business.
In June, top company officials announced that the Adani group plans to invest $100 billion over the next decade, with $21 billion allocated specifically for the airport sector.
It currently operates airports in Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram.
Going forward, it is set to commission a greenfield airport in Navi Mumbai by the year-end.
The group is looking for investment opportunities, as it expects to surpass the combined Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 1 trillion in the current financial year, as compared to a combined Ebitda of Rs 82,917 crore reported in 2023, according to a presentation made to the bankers.
To fund its expansion plans, the flagship firm is planning to launch a share sale to institutional investors to raise approximately Rs 16,700 crore.
The shares of Adani Enterprises closed flat at Rs 3,015 apiece, as the market value stood at Rs 3.43 trillion on Tuesday.
First Published: Sep 04 2024 | 8:28 PM IST
