Adani Enterprises Subsidiaries and Eurotunnel JV INC. Enter Joint Venture Agreement
On November 12, 2024, Adani Enterprises’ subsidiaries signed a Joint Venture Agreement with Eurotunnel JV INC., establishing a new free zone company (“JV Company”) in the UAE. This JV will operate in France and other agreed territories.
Key Participants
- Mumbai Travel Retail Private Limited (MTRPL): A subsidiary of Adani Enterprises.
- Ospree International FZCO (Ospree): MTRPL’s wholly owned subsidiary.
- Eurotunnel JV INC. (ETJV): Affiliated with the Falic Group and Duty Free Americas.
Objectives of the Joint Venture
The JV Company will manage business operations in France, with the potential to expand into other regions as mutually agreed.
Ownership and Governance
- Shareholding: Ospree holds 51% ownership, while ETJV holds 49%.
- Board Structure: A four-member Board of Directors will govern the JV Company, with each party appointing two directors. Board decisions require a unanimous vote.
Key Agreement Terms and Disclosures
- Capital Structure: Formed under UAE’s Jafza Companies Regulations, the JV Company has an authorized share capital of AED 100,000, divided into 10,000 shares at AED 10 each.
- Related Party Status: While MTRPL and Ospree are part of Adani Enterprises’ promoter group, ETJV is not; hence, the transaction is not classified as a related party transaction.
- Additional Disclosures: The agreement has no special rights for directors, pre-emptive share rights, or restrictions on capital structure changes. There are no identified conflicts of interest.
This Joint Venture Agreement enables Adani Enterprises, via its subsidiaries, to collaborate with Eurotunnel JV INC. and expand its operations into France and potentially other regions. The agreement outlines an equal partnership structure with shared management and decision-making.