Adani Enterprises to exit Adani Wilmar JV; to sell 31% stake to Wilmar International

Adani Enterprises Ltd., the flagship company of the Adani Group, has announced that it will exit the Joint Venture stake that it holds in Adani Wilmar Ltd.

In an exchange filing on Monday, December 30, Adani Enterprises said that it will sell 13% stake in Adani Wilmar to achieve minimum public shareholder requirements. However, the company has not specified how will this stake be divested.

Additionally, Wilmar has agreed to buy the remaining 31% stake that Adani Enterprises owns in Adani Wilmar.

Post this exit, Adani Group's nominee directors will step down from the board of Adani Wilmar and the parties have also agreed to take steps to change the name of Adani Wilmar.

As of the September quarter, Adani Commodities held a 43.94% stake in the company, while Lence Pte., a unit of Wilmar , has the remaining 43.94% stake.

The current stake that Adani Enterprises owns in Adani Wilmar is valued at over ₹18,300 crore or well over $2 billion.

Adani Enterprises will raise over $2 billion from this transaction overall, which is expected to be consummated before March 31, 2025.

The cash will be used to strengthen the incubation capacity of Adani Enterprises and also sharpen the focus on the consumer services under the Airports and Adani Digital arm.

Adani portfolio overall has a net debt-to-EBITDA ratio of 2.4 times, which will further improve with this transaction.

Adani Enterprises shares ended 7.3% higher on Monday at ₹2,585. The stock is down over 11% so far in 2024. Shares of Adani Wilmar ended 1.8% lower at ₹323.25 after the initial recovery from the lows. The stock is also down 12% so far in 2024.