Adani Enterprises Limited (AEL) has announced its complete exit from the Adani Wilmar Joint Venture by selling its 44% stake. As part of the exit, Wilmar International will acquire up to 31% of the equity held by AEL in the platform, according to a company filing dated December 30. This stake sale is expected to generate proceeds of approximately $2 billion, which AEL plans to utilize for investments in its core infrastructure platforms.
The agreement includes Adani Enterprises, Adani Commodities LLP, and Wilmar International’s subsidiary, Lence, in which Lence will buy shares of Adani Wilmar held by Adani Commodities LLP. Once the deal is completed, AEL would not hold any stake in Adani Wilmar.
The largest, Adani Enterprises jumped more than 7% on the same day to end near the session high.
Focus on Core Infrastructure
Adani Enterprises said the proceeds from this exit would be invested in expanding its core infrastructure platforms comprising energy and utilities, transport and logistics, and other allied sectors. The company said, “AEL will continue to invest in infrastructure sectors, further solidifying its position as India’s largest listed incubator of platforms driving India’s growth story.”
About Adani Wilmar Co-founded by Adani Enterprises and Wilmar International, Adani Wilmar is an FMCG major that boasts of unparalleled urban and rural reach, exporting to over 30 countries. This year, the company will make an IPO in January to give its manufacturing operations a boost and to widen the product bouquet.
Both the shareholders have also agreed to do the due process for renaming Adani Wilmar after the exit of AEL. The deal aligns with the strategic long-term vision of Adani Enterprises to focus on macroeconomic growth themes in India through infrastructure development and enhancement of its presence in key sectors that are considered critical for the country’s economy.
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