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:
- 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.
- 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.
- 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.
- 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.
