Adani group to exit Adani Wilmar, sell stake to raise over $2 billion – Newz9

NEW DELHI: Adani group on Monday introduced its full exit from the FMCG three way partnership Adani Wilmar, promoting its complete stake to Singapore-based accomplice Wilmar International and thru the open market, with complete proceeds anticipated to surpass $2 billion.
Adani Enterprises Ltd, which owned a 43.94% stake in Adani Wilmar Ltd, has introduced plans to sell a 31.06% stake to Wilmar International. Additionally, 13% stake will probably be offered within the open market to adjust to minimal public shareholding norms.
The 31.06% stake sale to Wilmar is valued at Rs 12,314 crore, primarily based on a most share worth of Rs 305 per share. Including the stake offered via the open market, complete proceeds are anticipated to exceed $2 billion (roughly Rs 17,100 crore).
The transaction is predicted to be finalized by March 31, 2025, with the proceeds earmarked to speed up the expansion of AEL’s core infrastructure companies.
“With this, AEL (Adani Enterprises Limited) will fully exit Adani Wilmar Ltd. Adani’s nominee directors will step down from the board of Adani Wilmar Ltd, the statement said.
“Adani Enterprises Ltd, Adani Commodities LLP (an entirely-owned subsidiary of AEL) and Lence Pte Ltd (an entirely-owned subsidiary of Wilmar International Ltd) have entered into an settlement on December 30, 2024, pursuant to which Lence will purchase all of the paid-up fairness shares of Adani Wilmar Ltd held by Adani Commodities as on the date of train of the decision possibility or put possibility, because the case possibly, in respect of a most of 31.06 per cent of the prevailing paid up fairness share capital of AWL,” it continued.
“It has been agreed between the events that AEL will divest a 13 per cent share in Adani Wilmar to obtain compliance with minimal public shareholding necessities,” the statement added without giving details.
Following this deal, Adani has made a significant comeback, addressing concerns about liquidity. This marks the first major deal following the November indictment of founder chairman Gautam Adani and associates by US federal prosecutors regarding a $265 million renewable energy contract bribery case. The Adani group maintains its innocence and plans legal action.
Adani Wilmar Ltd operates as a 50-50 partnership between Adani Group and Singapore’s Wilmar. Together, they control 87.87 per cent of the company, exceeding the allowed 75 per cent threshold.
“It could also be famous that with completion of those two legs, AEL would utterly exit its close to 44 per cent holding in Adani Wilmar,” the statement said, further adding that, “As of Friday, December 27, 2024, Adani Wilmar had a market capitalization of Rs 42,785 crore ($5.0 billion).”
AEL, in a statement, said it will use “the proceeds from the sale to turbocharge its investments within the core infrastructure platforms in power and utility, transport and logistics and different adjacencies within the major trade”.
The group stated it would maintain its infrastructure investments, reinforcing its place as India’s premier listed platform incubator, aligned with the nation’s development trajectory.
The divestment proceeds will improve AEL’s incubation capabilities and strengthen its give attention to client companies in airports and Adani Digital.
This transaction showcases Adani’s monetary prudence, with the group sustaining roughly 63 per cent fairness relative to complete belongings, set to improve via this deal.
In latest months, numerous group entities secured substantial funding: AEL raised $ 500 million in October, whereas Adani Energy Solutions Ltd, Ambuja Cement, and Adani Green Energy Ltd raised $ 1 billion, $500 million, and $444 million respectively.
As of September 30, 2024, Adani Wilmar operates as an equal partnership, with each Adani Enterprises and Wilmar Group holding 43.94 per cent stakes.
The FMCG firm reported consolidated income of Rs 51,555.24 crore within the earlier fiscal 12 months, with its market worth reaching roughly Rs 42,000 crore ($5 billion) on Monday.
The firm went public in February 2022, elevating Rs 3,600 crore via its IPO. Founded in 1999, Adani Wilmar produces Fortune model cooking merchandise together with oil, wheat flour, pulses, rice and sugar, working 23 services throughout 10 states.