Mumbai: The Adani Group, helmed by Gautam Adani, has announced its exit from the 25-year-old joint venture Adani Wilmar, selling its 44% stake in the FMCG company to Singapore-based Wilmar International for $2 billion. This strategic move is aimed at releasing capital to address liquidity requirements for the conglomerate’s core infrastructure business.
The transaction involves Wilmar International acquiring a 31% stake from Adani Enterprises and its wholly-owned subsidiary, Adani Commodities, at Rs 305 per share. This purchase will increase Wilmar’s stake in Adani Wilmar from 44% to 75%. The remaining 13% stake will be sold through an offer for sale to the public, adhering to Indian regulations mandating at least 25% public ownership in listed companies.
The deal values the 31% stake sold to Wilmar at approximately $1.4 billion, a 7.2% discount to Adani Wilmar’s closing share price on Monday. The remaining shares offered to the public are expected to generate additional proceeds.
This divestment signifies the end of Adani’s participation in the staples sector. Adani Wilmar, known for brands like Fortune sunflower oil and Kohinoor basmati rice, will be rebranded as AWL, AWL Agri Business, or Fortune Agri Business following the transaction.
As part of the transition, Pranav Adani, Gautam Adani’s nephew, and Malay Mahadevia, a long-time associate, resigned from the board of Adani Wilmar on Monday.
The move comes shortly after US authorities accused Gautam Adani of securities and wire fraud in connection with a $265 million bribery scheme involving Indian power contracts. The Adani Group has denied these allegations.
This sale is the latest in a series of divestments by the Adani Group, following the recent sale of its financial services business to Bain Capital. The proceeds will be directed towards strengthening its infrastructure operations, signaling a shift in focus to its core business areas.
