India’s Adani group is exiting its consumer goods joint venture with Singapore’s Wilmar International in a $2 billion deal. The divestment marks the Indian conglomerate’s first major transaction since the US indictment of its billionaire founder, Gautam Adani, in November.
Adani will sell 31% of its stake in Adani Wilmar, a company that produces edible oils and other food products, to Wilmar at a price not exceeding 305 rupees per share. The sale is expected to fetch $1.44 billion.
The deal comes as Adani seeks to focus on its infrastructure business, which has been its core area of operation. The group’s shares have risen nearly 8% after the announcement, while Adani Wilmar shares remain unchanged.
This exit marks a significant move by Adani to distance itself from its consumer goods business and comply with India’s minimum public shareholding requirements. The company will use the proceeds from the sale to boost its infrastructure investments.
The deal also highlights the growing demand for edible oils in the Indian subcontinent, which offers tremendous growth potential for agri-food businesses like Wilmar.
Source: https://www.reuters.com/world/india/indias-adani-group-exit-wilmar-joint-venture-2024-12-30