NYSE to delist Caisse and OMERS-backed Azure as corruption probe drags on

financialpost.com:

The New York Stock Exchange plans to delist Azure Power Global Ltd., an Indian renewable-power firm controlled by Canadian pension funds that’s embroiled in a corruption investigation.

The exchange said July 13 it will start the delisting process after Azure warned it still can’t meet a deadline for filing its overdue 2022 financial statements. 

The Azure investment has been a governance nightmare for Caisse de depot et placement du Quebec, Canada’s second-largest pension manager, which acquired 56 per cent of the company at a cost of about $480 million, according to Bloomberg calculations.

Ontario Municipal Employees Retirement System (OMERS) is the no. 2 holder with about 23 per cent, according to data compiled by Bloomberg.

The New Delhi-based power producer is in the midst of an investigation into alleged “corrupt activities” in connection with one of its projects. The probe has been going on since last year, when it received a whistleblower complaint into misconduct by employees, and the new chief executive officer quit suddenly. The shares have lost more than 80 per cent of their value since that disclosure; trading is now suspended.

In the meantime, Azure has appointed a new accounting firm, ASA & Associates LLP, to help finish financial statements for the fiscal year ended March 2022, but it might take about three more months. The company’s shares “are not suitable for listing, because the company is a late filer,” NYSE said in a statement. Azure had earlier said it may appeal any delisting decision.

Azure has given few specifics about its internal investigation, though it also encompasses “certain asset acquisition transactions.” In May, the company appointed a new chief executive and chief financial officer.

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