Adani Enterprises (AEL) has unveiled its plans to exit from Adani Wilmar, its joint venture with Singapore-based Wilmar International, in a deal worth around $2bn.
AEL, through its fully owned subsidiary Adani Commodities (ACL), has signed an agreement with Lence, a wholly owned subsidiary of Wilmar International.
Under the terms of the agreement, AEL would fully exit from the Adani Wilmar platform by divesting its nearly 44% stake in Adani Wilmar.
Lence will acquire all the equity shares of Adani Wilmar held by ACL, amounting to a maximum of 31.06% of the existing shares of AWL.
In addition, AEL will sell around 13% of Adani Wilmar’s shares to achieve compliance with minimum public shareholding requirements.
Adani Wilmar had a market capitalisation of INR427.8bn (about $5bn) as of 27 December 2024.
The transaction is subject to certain customary conditions, including receipt of necessary regulatory approvals.
As part of the transaction, ACL’s nominee directors will resign from the board of Adani Wilmar, and the parties have agreed to change the name of the joint venture.
AEL intends to use the proceeds from the transaction to support its investments in the core infrastructure platforms in energy and utility, transport and logistics, and other industries.
In addition, the company said it will continue to invest in infrastructure sectors which will further strengthen its position in macro themes.
Adani Wilmar is a large-scale food FMCG player in India, jointly built by AEL and Wilmar. The company offers edible oil products, including soyabean oil, palm oil, sunflower oil, rice bran oil, mustard oil, groundnut oil, cottonseed oil, blended oil, vanaspati and speciality fats.
Adani Wilmar has 100% urban coverage, a presence in more than 30,600 rural towns in India and export relations with over 30 countries worldwide.
