GQG Partners, a major Adani Group investor, announced an AUD$100 million share buyback on November 22, a day after its Australia-listed shares dropped over 19% following bribery and fraud charges against Adani Group chairman Gautam Adani in the US.
Key Highlights:
- Buyback Plan:
GQG Partners informed the Australian Securities Exchange that the buyback would provide flexibility to purchase CHESS Depository Instruments (CDIs) of its common stock. The move aims to capitalize on current market volatility and address the undervaluation of its shares. - CEO Statement:
CEO Tim Carver described the buyback as a strategic opportunity, stating, “We believe our stock is undervalued, and this is a great investment opportunity. GQG has a strong balance sheet, and we are confident in the strength of our business.” - Adani Group Exposure:
GQG Partners holds a combined 20% stake in four Adani Group companies. The firm’s shares were hit hard on November 21, reflecting investor concerns following the bribery and fraud allegations. - Business Outlook:
Despite the market turbulence, GQG emphasized its robust financial position, managing $159.4 billion in assets as of October 31, 2024, for a global clientele of pension funds, sovereign funds, and other institutions.
The buyback highlights GQG’s confidence in its long-term strategy, seeking to reassure investors and stabilize its stock amidst the ongoing controversy surrounding the Adani Group.
