Adani Group is in talks with a number of multinational consumer goods companies about selling its entire 43.97% stake in Adani Wilmar Ltd, which owns the Fortune brand of edible oils and packaged groceries. They predicted that a deal would be reached within a month.
As per the company, the ports-to-renewable-energy conglomerate expects to pay $2.5-3 billion for its stake in the joint venture with Singapore-based Wilmar International, which also owns 43.97% of the company.
The share price of Adani Wilmar has dropped from Rs 488 in mid-May to Rs 317.45 on Friday, giving it a market value of Rs 41,258 crore ($4.96 billion).
"Adani Group will exit a few businesses to invest more deeply in core focus areas such as infrastructure," one executive said. "Plans to disinvest its stake in Adani Wilmar are on these lines," he said, adding that proceeds from the proposed sale are likely to be used for investments in other group businesses, and not to pare debt.
Adani Wilmar is one of the largest players in the edible oil segment. Last fiscal year, the company reported a net profit of Rs 607 crore on revenue of Rs 55,262 crore.
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