The Adani Group is set to exit its stake in Adani Wilmar Ltd., the consumer-focused joint venture, through a multi-phased $2 billion deal. The decision comes as the conglomerate refocuses on its core infrastructure sectors, including air transport and renewable energy.
The deal, confirmed by a filing to the stock exchange, sees Adani Enterprises Ltd. selling a 13% stake in Adani Wilmar to meet public shareholding requirements. The remaining 31% will be acquired by Wilmar International Ltd., the Singaporean joint venture partner, at a price capped at ₹305 ($3.57) per share—a discount from Monday’s closing price of ₹328.75. The total market value of Adani Wilmar stands at around $5 billion.
The sale will mark Adani’s complete exit from the 44% stake it holds in Adani Wilmar, with proceeds from the transaction earmarked for bolstering the group’s infrastructure business. This includes investments in key sectors such as air transport and renewable energy. However, the exit comes at a time of heightened scrutiny on the Adani Group, as founder Gautam Adani faces legal challenges in the US related to alleged bribery and corporate governance concerns. These issues have raised doubts over the group’s ability to raise funds and led to negative watch ratings from credit agencies.
Despite these challenges, shares of Adani Enterprises saw a significant uptick, gaining 8.3% in Mumbai trading, while Adani Wilmar’s stock experienced a minor decline following the announcement. As part of the restructuring, Adani’s nominee directors will step down from the Adani Wilmar board, and the company may undergo a name change.