Adani Enterprises sells 100 per cent stake in subsidiary firm for Rs 13.61 lakh

NEW DELHI: Adani Enterprises on Friday said that it had sold 100 per cent stake in its wholly-owned subsidiary Adani Energy Ltd (AEnL) for Rs 13.61 lakh. The company, without disclosing the name of the buyer, said, “the buyer does not belong to the promoter/promoter group/ group companies”.

Adani Energy’s net worth on March 31st 2017 stood at Rs 1.78 crore and had nil value in its turnover section.

In 2006, the subsidiary firm entered into a master sale and purchase agreement with Malaysia’s Asean LNG Trading Co. As per information available, the deal turned sour as the receiving terminal was not available to Adani Energy and the delivery notice was not signed, which rendered the contract inconclusive and ineffective.

Asean LNG initiated arbitration proceedings against the subsidiary company in the London Court of International Arbitration (LCIA), claiming Rs 648.50 crore in damages for failure to adhere to the agreement. LCIA gave an interim award requiring Adani Energy to pay $34.4 million to Asean LNG with interest.

In November 2013, the Supreme Court dismissed Adani Energy’s appeal challenging the Gujarat High Court order holding that the Indian court did not have any jurisdiction to hear a plea against the foreign arbitrator’s award