Adani Enterprises To Fully Exit Consumer Goods JV Of Adani Wilmar, To Sell 44% To Exit; Check Details

Adani Enterprises Limited (AEL), the flagship company of the Adani Group, announced on Monday, December 30, its decision to fully exit its consumer goods joint venture, Adani Wilmar Limited (AWL).

Details of the Agreement

As part of the exit strategy, AEL will sell its 44% stake in AWL. A substantial portion of this, approximately 31.06%, will be acquired by Lence Pte Ltd, a wholly-owned subsidiary of Wilmar International. The acquisition will occur at a price not exceeding Rs 305 per share, as detailed in an exchange filing.

"Adani Enterprises, Adani Commodities LLP (ACL)-a wholly-owned subsidiary of AEL-and Lence Pte Ltd have entered into an agreement on December 30, 2024. Under this agreement, Lence will acquire up to 31.06% of the existing paid-up equity share capital of Adani Wilmar held by ACL, through either a call or put option mechanism," AEL stated in its press release.

Additionally, AEL plans to divest around 13% of its stake in AWL to meet the regulatory minimum public shareholding requirement. With this, AEL will completely exit its holding in the joint venture, relinquishing its ~44% equity stake in total.

Board Composition & Branding

As part of the transition, Adani Commodities' nominated directors-Pranav V. Adani and Dr Malay Mahadevia-will step down from the board of AWL. Both parties have also agreed to initiate the process of rebranding, ensuring that the name "Adani Wilmar Limited" is changed before or upon the completion of the transaction.

Adani Enterprises witnessed a surge, closing 7.26% higher at Rs 2,585 per share on the National Stock Exchange (NSE) during Monday's trading session. On the other hand, Adani Wilmar's shares ended the day 1.81% lower at 323.25 per share.