Adani Group is currently engaging in discussions with several multinational consumer goods corporations regarding the potential sale of its complete 43.97% share in Adani Wilmar Ltd, the owner of the renowned Fortune brand known for its edible oils and packaged grocery products. According to insiders familiar with the situation, a transaction is anticipated to be formally concluded within the next month.
The conglomerate, which spans ports and renewable energy, anticipates receiving $2.5-3 billion for its stake in the joint venture with Wilmar International, a Singapore-based company that also holds a 43.97% ownership in the firm, as per their statement.
As of the press time, emails sent to Adani Group and Adani Wilmar have gone unanswered.
Wilmar International has chosen not to provide a comment.
Adani Wilmar’s stock price has decreased from INR 488 in mid-May to INR 317.45 on Friday, resulting in a market capitalization of INR 41,258 crore ($4.96 billion).
“Adani Group will exit a few businesses to invest more deeply in core focus areas such as infrastructure,” one executive said. “Plans to disinvest its stake in Adani Wilmar are on these lines,” he said, adding that proceeds from the proposed sale are likely to be used for investments in other group businesses, and not to pare debt.
Adani Wilmar stands as a major contender in the edible oil industry. In the previous fiscal year, the company disclosed a net profit of INR 607 crore on a revenue of INR 55,262 crore.
The group’s promoters have been contemplating divestment of non-core assets to establish a financial cushion. This decision was prompted by the Hindenburg short-seller report on the group earlier this year, which resulted in the abrupt cancellation of a planned share sale in the flagship Adani Enterprises and caused a wealth erosion of $150 billion for investors. However, it’s worth noting that the group’s companies have since regained most of the value lost in their share prices.
