Canadian major Ballard Power Systems —the global leader in proton exchange membrane (PEM) fuel cell technology—is eyeing up to 10% stake in Adani Power, an arm of the diversified Adani Group. The deal at current market price is valued close to $500 million. Adanis hold 73.5% in the company.
The promoters of Adani Power have raised funds by pledging over 53% of the promoter shareholding in the firm. An industry source said the falling share price of the company may trigger the stake sale. The value of the Adani Power shares pledged is pegged at Rs 9,213 crore. Adani Power shares closed up at Rs 112 on Friday, which touched its all-time low of Rs 105.75 a day earlier. The stock had touched its 52-week high of Rs 144.55 in September 2010.
Ballard Power Systems spokesperson, in an e-mail response to a query by TOI, said: “It is Ballard's policy not to comment on or respond to inquiries or rumours concerning prospective corporate developments or transactions or future financial performance.” Adani Power officials neither confirmed nor denied the development, citing group's policy not to comment on market speculation.
Source: Times of India