Adani Enterprises completes $2 billion exit from Adani Wilmar joint venture

Adani Enterprises (AEL) has completed its exit from the Adani Wilmar joint venture, selling its entire 44% stake in the company in a move designed to comply with public shareholding regulations. A filing made to the stock exchanges on December 30 revealed that AEL sold 13% of its stake through an Offer for Sale (OFS) to meet minimum public shareholding requirements. The remaining 31% was acquired by Wilmar International, a Singapore-based company, at a price of no more than Rs 305 per share. The deal is expected to close by March 2025.

The divestment is valued at over $2 billion, and Adani Enterprises has indicated that the proceeds will be directed into "core infrastructure platforms," focusing on sectors such as energy and utilities, transport and logistics, and other adjacent industries.

Under the terms of the agreement, Adani Enterprises, its affiliate Adani Commodities LLP (ACL), and Wilmar’s subsidiary Lence will proceed with the transaction. Lence will acquire ACL's 31.06% stake in Adani Wilmar. With this, Wilmar will increase its shareholding to nearly 62%, consolidating its control over the company.

Additionally, Adani’s nominee directors will step down from the Adani Wilmar board, and the company is considering a name change, with potential new titles including 'AWL Limited' or 'Fortune Agri Business Limited.' The rebranding, subject to approval by the Ministry of Corporate Affairs, will signal the completion of AEL's exit from the company.

This transaction comes just ahead of a regulatory deadline in February, which required the combined shareholding of Adani and Wilmar in Adani Wilmar to be reduced from nearly 88% to 75% in order to meet the public float requirement.

Adani Wilmar, a major player in India's FMCG market, has expanded its reach to over 30,600 rural towns and exports to more than 30 countries. Since its IPO in January 2022, the company has focused on strengthening its manufacturing capabilities and broadening its product portfolio. As of now, it holds a market capitalization of Rs 42,785 crore.