GQG Partners launches share buyback a day after stock tumbles over US bribery charges against Adani Group

GQG Partners launches share buyback a day after stock tumbles over US bribery charges against Adani Group

Adani Group shareholder GQG Partners launched share buyback on November 22, a day after the investment firm's Australia-listed shares tanked as the Adani Group chairman Gautam Adani was indicted in the United States.

On November 21, shares of GQG Partners, which holds a combined stake of nearly 20% in four Adani firms, fell more than 19% after Gautam Adani was charged with bribery and fraud in New York.

On November 22, GQG told Australian Securities Exchange "it will have flexibility to purchase up to AUD$100 million of CHESS Depository Instruments on common stock (CDIs)".

"The on-market buy-back recognises the significant market volatility at present and will allow GQG to opportunistically and flexibly acquire CDIs. The Board believes that the current CDI price significantly undervalued the Company. GQG continues to have a strong and robust balance sheet which favourably positions the Company to undertake this capital management initiative. The total number of shares to be purchased under the market buy-back will be dependent on business and market conditions and GQG may, at its discretion, vary the size of the on-market buy-back," added GQG Partners.

“We believe our stock is undervalued and this is a great investment opportunity,” said CEO Tim Carver. “We have a strong balance sheet and GQG believes in the strength of its business. We’re happy to buy our stock at these values.”

GQG Partners Inc. is a global investment boutique headquartered in the United States that focuses on managing active equity portfolios. As of October 31, 2024,GQG said it managed $159.4 billion for investors that include many large pension funds, sovereign funds, wealth management firms and other financial institutions around the world. GQG is listed on the Australian Securities Exchange.