Adani Enterprises to Exit Adani Wilmar JV, Raising Over $2 Billion

Ahmedabad: Adani Enterprises Ltd (AEL) announced on Monday its decision to exit Adani Wilmar Ltd (AWL) by divesting its entire 44% stake, a move expected to raise over $2 billion.

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Key Developments:

1. Stake Divestment:
   • AEL will sell 13% of its shares in AWL through an offer for sale (OFS) to meet minimum public shareholding requirements.
   • Wilmar International Ltd will acquire the remaining 31% stake held by Adani Enterprises in the edible oil venture.
2. Market Capitalisation and Share Price:
   • As of December 27, Adani Wilmar had a market capitalisation of ₹42,785 crore ($5 billion).
   • The shares will be sold at a mutually agreed price, capped at ₹305 per share.
3. Agreement Details:
   • Adani Commodities LLP, a subsidiary of Adani Enterprises, and Lence Pte Ltd, a subsidiary of Wilmar International, have entered into an agreement for this transaction.
   • The deal includes provisions for a call or put option to transfer up to 31.06% of AWL’s paid-up equity share capital to Lence.
4. Board Resolution and Rebranding:
   • AEL’s board has approved the resignation of its nominee directors from AWL’s board.
   • Discussions are underway for renaming Adani Wilmar Ltd to reflect the ownership change.

Strategic Shift for Adani Enterprises

The proceeds from the sale will enable AEL to:

• Accelerate investments in its core infrastructure platforms, including energy, utilities, transport, and logistics.
• Reinforce its position as India’s largest listed incubator, focusing on sectors driving India’s growth.

Adani Wilmar’s Market Presence

• AWL has 100% urban coverage and operates in over 30,600 rural towns across India.
• The company exports to more than 30 countries globally, maintaining a strong presence in the edible oil market.

Final Thoughts

Adani Enterprises’ exit from AWL marks a strategic pivot toward bolstering its infrastructure investments. This move underscores the group’s commitment to aligning with India’s growth trajectory while maintaining its dominance across critical sectors.