Adani Group to exit FMCG joint venture Adani Wilmar in $2 billion deal

Adani Enterprises — which held 43.94% stake in Adani Wilmar, will sell 31.06% stake to Wilmar Int'l & about 13% will be sold in open market

NEW DELHI: Billionaire Gautam Adani's group on Monday announced its exit from FMCG joint venture Adani Wilmar by selling its entire stake to the Singaporean partner and in the open market for over $2 billion in a first major deal since the US bribery indictment.

In a statement, Adani Enterprises Ltd — which held 43.94 per cent stake in Fortune brand cooking oil, wheat flour and other food product maker Adani Wilmar Ltd — said it will sell 31.06 per cent stake to Wilmar International. The remaining about 13 per cent holding will be sold in the open market to meet minimum public shareholding requirements.

Adani will sell up to 40.37 crore shares (31.06 per cent stake) to Wilmar at no more than Rs 305 apiece to net Rs 12,314 crore. Adding the share sale through OFS, whose price will be determined on the day of sales, the total proceeds will exceed $2 billion (about Rs 17,100 crore).

"With this, AEL (Adani Enterprises Limited) will fully exit Adani Wilmar Ltd," it said. "Adani's nominee directors will step down from the board of Adani Wilmar Ltd."