Indian billionaire Gautam Adani’s dream of climbing the global wealth rankings faltered after a media article raising questions about some offshore investors sparked a rout in his conglomerate’s six listed stocks.
The mogul has lost more money than anyone else in the world over the past week, his fortune declining from about $ 13.2 billion to $ 63.5 billion on Thursday, according to the Bloomberg Billionaires Index.
Days earlier, Mr Adani, 58, had narrowed the gap on Mukesh Ambani as Asia’s richest man. Four of six Adani Group shares fell further on Friday, taking last week’s sell-off to a fifth straight session.
The about-face began on Monday after the Economic times reported that India’s National Equity Custodian has frozen the accounts of three Mauritius-based funds – Albula Investment Fund, Cresta Fund and APMS Investment Fund – due to insufficient owner information.
The bulk of the holdings in the funds – around $ 6 billion in total – are shares of Mr. Adani’s companies.
Although the Adani Group called the report a “glaring error” and “made to deliberately mislead the investment community,” concerned investors rushed for the exit.
Mauritius offshore funds hold more than 90 percent of their managed assets in Adani group companies, according to Bloomberg Intelligence. The Adani Group said on Monday that the funds “have been investing in Adani Enterprises for over a decade … We urge all of our stakeholders not to be confused by market speculation.”
In identical exchange documents the same day, the Adani group companies said they had received written confirmation from the registrar and transfer agent that dematerialized accounts of offshore funds in which Adani shares were held were not were not frozen.
Albula and APMS said in separate statements dated June 14, which were sent by their management company IQ EQ Fund Services (Mauritius), that the funds were fully operational.
The relevant entry from the National Securities Depository Limited “for the APMS investment fund only shows a” technical “account level freeze that has absolutely nothing to do with its normal REIT trading activities,” APMS said.
Shares of Adani Green Energy, the tycoon’s most valuable asset, fell about 13% last week in Mumbai. Adani Ports & Special Economic Zone fell 17% while Adani Power, Adani Total Gas and Adani Transmission plunged at least 22% this week. Adani’s flagship companies fell about 7%.
However, Adani Ports and Adani Enterprises closed higher on Friday, reducing some of the week’s losses.
Tesla chief executive Elon Musk decided to sell the last of his homes a week after a report revealed that he and other billionaires had paid little to no income taxes for several years.
Mr Musk, 49, said he only had one house in the San Francisco Bay Area that was rented out for events and if he sold it it “would have less use. , unless bought by a large family, which could happen one day ”.
He first announced his intention to sell his homes and most of his property over a year ago in an effort to tone down criticism over his wealth. Within days, he brought two of his Californian properties to market.
Earlier this month, ProPublica reported that Mr. Musk, Amazon CEO Jeff Bezos and Berkshire Hathaway Chairman Warren Buffett paid little income tax compared to their inordinate wealth. The report cites a wealth of data from the Internal Revenue Service on the tax returns of thousands of wealthy Americans. Mr. Musk paid no federal income taxes in 2018 and less than $ 70,000 in 2015 and 2017, according to the report.
An IRS official said last week that the data breach was reported to the FBI.
After the ProPublica report, Mr Musk tweeted that he would continue to pay income taxes in California in proportion to his time spent in the state, which he said would be significant. He moved to Texas last year and said he is now renting a house worth around $ 50,000 in Boca Chica from SpaceX, which has a launch site in the area.
Patrick Drahi bought a 12% stake in the BT group and pledged to support its broadband exercise, an unexpected move that marks a return to the form of the billionaire of Franco-Israeli cable hungry for deals.
Mr Drahi’s newly formed company, Altice UK, has acquired 1.2 billion shares of Britain’s main telephone company, it announced 10 days ago. The stake is worth around £ 2.2bn ($ 3.05bn) and makes him the largest shareholder in the company.
The entrepreneur has a habit of challenging the old incumbents of the European telecommunications industry and has often brought about far-reaching changes and forced the sale of assets in the companies in which he has invested. More recently, he took a break from major transactions to focus on paying down debt. .
New stake in BT is a big surprise
Carl Murdock-Smith, Analyst at Berenberg
The new stake in BT is a big surprise and a “good curve,” said Carl Murdock-Smith, analyst at Berenberg.
Mr Drahi, 57, said he would use Altice’s expertise in installing fiber networks to help BT grow its own.
The British company was looking for a partner to help it install 5 million more fiber optic connections by 2026, opening its infrastructure for the first time to an external investor.
Altice has said it does not intend to launch a full takeover bid on BT.
BT said it welcomes “all investors who recognize the long-term value of our business and the important role it plays in the UK. We are making good progress in implementing our strategy and plan ”.
Mr Drahi established himself by buying and selling small cable companies in France, before embarking on a wave of debt-fueled acquisitions that turned his modest cable TV and telephone group into the one of the largest media and telecommunications companies in the world.
The company is still grappling with debt of 35 billion euros ($ 41.6 billion), according to data compiled by Bloomberg.
Cheng Wei, the billionaire co-founder of Chinese ride-sharing company Didi Chuxing, is set to rise through the ranks of the super-rich when his company goes public in the United States.
Didi filed an initial public offering under his official name of Xiaoju Kuaizhi last week and revealed that the Chinese entrepreneur owns 7% of the company. With Didi reportedly trading at around $ 95 billion in the secondary market in recent months, that stake could be worth as much as $ 6.7 billion, according to the Bloomberg Billionaires Index.
Co-founder and chairman Jean Liu owns a 1.7% stake that could be worth $ 1.6 billion. Eight other executives collectively own about 1.8% of the company, for a total value of about $ 1.7 billion.
It is the latest example of immeasurable wealth in Asia as companies backed by Masayoshi Son’s SoftBank group prepare to go public. Singaporean company Grab Holdings is on the verge of merging with a specialist acquisition company while Indonesian group GoTo continues to list by the end of the year.
“Mobility is one of the most important growth sectors in Asia,” said Gary Dugan, managing director of the Global CIO Office in Singapore. The breadth of Didi’s offer “shows how much economic value continues to be created”.
A representative for Didi did not respond to a request for comment.
The rideshare company is counting on a remarkable post-pandemic recovery that accelerated after China became the world’s first major economy to emerge from Covid-19. The return to work and resumption of travel allowed revenues to more than double to 42.2 billion yuan ($ 6.6 billion) in the first quarter, reversing the decline from last year.
Didi is one of the largest Chinese internet companies to tap public markets in recent years, part of a second wave of start-ups aspiring to join the Alibaba Group and Tencent in the upper echelons of China’s tech industry.
With more than 493 million annual active users, mostly in China, the company was valued at $ 62 billion after a previous fundraiser and sought a valuation of between $ 70 billion and $ 100 billion during the IPO. .