Adani To Exit from AWL, To Sell Entire 31% Stake to Wilmer International
Moneylife Digital Team 30 December 2024
Indian conglomerate Adani group has decided to exit from its joint venture with Wilmar International Ltd of Singapore by selling its entire stake in Adani Wilmer Ltd (AWL) to its partner for not exceeding Rs305 per share. Adani group will sell a 31.06% stake to Wilmar International for Rs12,314 crore at a share price of no more than Rs305 per share. Further, with the share sale through offer for sale (OFS), the total proceeds for Adani group will exceed US$2bn (billion) or around Rs17,100 crore.
 
In a regulatory filing, AWL says, "Adani Commodities LLP (ACL), Adani Enterprises Ltd (AEL) and Lence Pte Ltd, a wholly owned subsidiary of Wilmar International (Lence), have entered into an agreement, in terms of which ACL and Lence have agreed to grant a simultaneous right of call option and put option to each other to have the option to exercise such a right for purchase and sale of all shares held by ACL at the time of exercise of such option up to a maximum of 403.74mn (million) shares constituting 31.06% of the paid-up equity share capital of Adani Wilmar."
 
In its regulatory filing, Adani Enterprises says it will divest its about 13% shares in Adani Wilmar to achieve compliance with minimum public shareholding requirements. "It may be noted that with completion of these two legs, AEL would completely exit its about 44% holding in Adani Wilmar." 
 
As of 27 December 2024, Adani Wilmar had a market capitalisation of Rs 42,785 crore or about US$5bn.
 
Following the agreement, ACL's nominee directors Pranav Adani and Dr Malay Mahadevia have resigned from the board of AWL. 
 
The company will also change its name from Adani Wilmar Ltd to AWL Ltd or AWL Agri Business Ltd or Fortune Agri Business Ltd or such other name as approved by the Union ministry of corporate affairs (MCA), subject to approval of shareholders, MCA and such other applicable statutory and regulatory authorities, as required, AWL says. 
 
On Monday, AEL closed 7.65% up at Rs2,593.45, while AWL ended the day flat at Rs329.50 on the BSE. The 30-share Sexsex closed Monday flat at 78,248.13 points.
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