PO: Sale of Afcons will not halt projects

Afcons Infrastructure conducts geotechnical surveys for the Greater Male' Connectivity Project. (Photo/Afcons Infrastructure)

The sale of India’s Afcons Infrastructure will not affect the project its running in Maldives, states President’s Office spokesperson Miuvaan Mohamed.

In a press conference Thursday, Miuvaan said it is common for big holding companies to sell their subsidiaries and assets. He said that it will not disrupt projects.

Miuvaan pointed out that the Trans Maldivian Airways (TMA), which has the world’s largest seaplane fleet, had also changed ownership numerous times.

“TMA has also been sold numerous times. Different shareholders. It was recently bought by a new company. But it did not disrupt TMA’s operations,” he said.

Miuvaan said that the sale of Afcons will not affect its agreement with the Maldivian government.

He accused some politicians and economists of deliberately misleading the public.

 “This is being said by politicians. I want to note that some economists are making the claim too. I think this is the basics of [how] companies [operate]. This is a deliberate attempt to mislead the public,” he said.

Foreign news outlets report that Afcons’ parent company, Shapoorji Pallonji Group (SP Group), owned by billionaire Shapoor Mistry, is facing major financial blowback which has prompted the company to weigh sale of USD 2 billion worth in company’s assets in addition to seeking a buyer for its shares in Afcons.

SP Group is also looking to sell some ports including one of their biggest; Gopalpur Port on the east coast of India.

As per the reports, SP Group is seeking the money to repay its debt obligations.

The value of projects contracted to Afcons in the Maldives is around MVR 10 billion; MVR 8.2 billion for Thilamale’ bridge project and MVR 1.1 billion for Addu road development project.

SP Group last year sold its purifier company valued at USD 536 million, Eureka Forbes Limited, to ease the financial constraints faced by the company. Following the sale of the Eureka, they had repaid a debt of USD 1.5 billion.