Adani Enterprises Ltd (AEL) has announced its decision to sell its entire 44% stake in Adani Wilmar Ltd (AWL) in a move valued at approximately $2 billion.
The stake sale, which will occur in two phases, is part of a broader strategy to refocus on the company’s core business sectors.
The first phase will see Adani Enterprises, along with its wholly-owned subsidiary Adani Commodities LLP (ACL), divest shares to Lence Pte Ltd, a fully-owned subsidiary of Wilmar International.
Lence Pte Ltd is set to acquire up to 31.06% of AWL’s paid-up equity shares through a call or put option mechanism. The second phase will involve a partial divestment of approximately 13% of AWL shares to meet the minimum public shareholding requirements, completing Adani Enterprises’ exit from the fast-moving consumer goods (FMCG) business.
As of December 27, 2024, Adani Wilmar had a market capitalisation of approximately Rs 42,785 crore (roughly $5 billion). Following the announcement, shares of Adani Enterprises saw a sharp rise of 7%, closing at Rs 2,585, while Adani Wilmar’s stock dropped by 1.81%, settling at Rs 323.25 per share.
In line with the agreement, the nominee directors of Adani Commodities LLP on the board of AWL will step down. The companies have also announced plans to rebrand Adani Wilmar under a new name.
Among the options being considered are “AWL Limited,” “AWL Agri Business Limited,” and “Fortune Agri Business Limited.” The final choice will require approval from the Ministry of Corporate Affairs.
Adani Enterprises has indicated that the proceeds from the stake sale will be reinvested into its key infrastructure sectors, including energy, utilities, transport, logistics, and other industrial verticals.
This move aligns with the company’s ongoing efforts to strengthen its position in critical infrastructure areas.
The transaction remains subject to regulatory approvals and other customary conditions, but once completed, it will mark the restructuring of AWL’s ownership.
The FMCG joint venture, established between the Adani Group and Wilmar International, will undergo significant changes as a result of the deal.
Source: With inputs from Indian media