Business
US Examined Hindenburg Allegations Against Adani Group Before $553 Million Investment In Sri Lankan Project To Offset Chinese Influence
Adani Group. (Representative image).
In a significant move, the United States government has extended support to Indian billionaire Gautam Adani's conglomerate, providing up to $553 million for a container terminal project in Sri Lanka.
Despite scathing allegations of corporate fraud by short-seller Hindenburg Research, a senior US official revealed that the government concluded that the accusations were not relevant to Adani Ports & Special Economic Zone Ltd., the subsidiary leading the Sri Lankan venture.
As reported by BQprime, The International Development Finance Corp. (DFC) conducted a thorough due diligence investigation, emphasising that the Hindenburg report's claims of Adani pulling off "the largest con in corporate history" did not apply to the specific project.
This marks one of the most prominent US government-backed infrastructure projects in Asia and is seen as a strategic move to counterbalance China's influence in the region.
Despite the Hindenburg allegations erasing around $100 billion from the Adani Group's market value earlier this year, the conglomerate has vehemently denied the claims, including stock-price manipulation.
Regulatory inquiries and court hearings in India have also not uncovered any wrongdoings so far.
The Adani Group views the DFC's investment as a vote of confidence, calling it a reaffirmation of its vision, capabilities, and governance.
Karan Adani, the tycoon's son, and CEO at Adani Ports, stated, "We see this as a reaffirmation by the international community of our vision, our capabilities and our governance," when announcing the deal in Colombo.
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