Adani Encumbers $13 Billion Stake in Newly Bought Cement Units - MMJC

 Billionaire Gautam Adani’s group set aside shares valued at about $13 billion in two Indian cement firms as part of a lending agreement.

Stakes in two of those companies — about 57% of ACC Ltd. and 63% in Ambuja Cements Ltd. — have been encumbered “for the benefit of certain lenders and other finance parties,” according to separate filings made to Indian stock exchanges by Deutsche Bank AG’s Hong Kong branch.

The transaction is a so-called non-disposal undertaking, which is essentially a way for companies to borrow funds against their shares.

According to Our Partner – Makarand Joshi – “NDU generally doesn’t give the lender a right over the shares, It’s not a security, while lien or a pledge are used to secure a loan, where lender gets the control.”

https://news.yahoo.com/adani-encumbers-13-billion-stake-062327771.html