New Delhi: Adani Enterprises Ltd. (AEL) announced on Monday that it will completely exit its joint venture with Singapore-based Wilmar International, Adani Wilmar Ltd. (AWL). The divestment will involve selling its entire 44% stake, with approximately 13% being offloaded in the open market to meet public shareholding requirements and the remaining 31% being acquired by Wilmar.
The deal, estimated to be worth over $2 billion, will see Wilmar increase its ownership in AWL from 44% to nearly 75%. AEL will sell its 31% stake to Wilmar at a maximum price of Rs 305 per share, with the 13% market sale expected to occur at a similar price.
Following the announcement, AEL’s nominee directors, Pranav V Adani and Malay Mahadevia, resigned from the AWL board. The company also plans to rename AWL, with potential options including AWL Ltd, AWL Agri Business Ltd, and Fortune Agri Business Ltd. This move comes shortly after Gautam Adani and others faced bribery and fraud conspiracy charges in the United States.
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AEL stated that the proceeds from the stake sale will be utilized to fuel growth in its core infrastructure sectors, such as green energy, airports, and road infrastructure. This divestment follows the company’s recent $500 million fundraising through a Qualified Institutional Placement (QIP) in October.
Adani Wilmar, listed in 2022, is a major player in India’s edible oil and FMCG markets. The company operates 24 manufacturing facilities, has a vast distribution network, and exports its products globally. Wilmar International expressed its confidence in AWL’s ability to capitalize on the growing Indian rural market.
This strategic move by Adani Enterprises signifies a shift in its focus towards its core infrastructure businesses while allowing Wilmar to solidify its position in the Indian FMCG market.
