GQG announces buyback after shares hit by Adani scandal
Make us a preferred source
Make us a preferred source on Google
The news: Investment manager GQG Partners has announced a buyback to bolster its share price, a day after its share price plunged 19.32% following the company announcing that it was reviewing its investments in Adani Group.
The numbers: The Florida-based firm said on Friday it would purchase up to $100 million worth of its ASX-listed securities, which had lost nearly a fifth of their value in the previous session after US prosecutors charged Adani Group chair Gautam Adani over an alleged USD250 million ($383.97 million) bribe.
GQG shares are up 10% to $2.35 in early trading.
The context: GQG said the on-market buyback recognises the significant market volatility at present and will allow the company to opportunistically and flexibly acquire its CHESS Depository Interests.
GQG became one of the biggest investors in Adani group companies after their stocks fell in March last year. On Thursday, it said more than 90% of its clients’ assets are invested in issuers unrelated to the Adani Group.
US authorities have alleged Adani and seven other defendants agreed to pay about USD265 million in bribes to Indian government officers to obtain contracts to develop India’s largest solar power plant project.
What they said: “We believe our stock is undervalued and this is a great investment opportunity,” GQG chief executive Tim Carver said.
The source: ASX announcement
