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Adani Group, Wilmar exploring to sell $670 million stake in JV: Report
Adani and Wilmar in talks to sell minority stake in Adani Wilmar Ltd to comply with shareholding regulations
Gautam Adani and Wilmar International Ltd. are in early talks with banks to sell a minority stake in their consumer joint venture Adani Wilmar Ltd, Bloomberg reported citing people in the know. This will help the company abide by shareholding regulations, the report added as the owners are exploring selling equal stakes that may total 13% in Mumbai-listed Adani Wilmar.
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The sale would be valued at roughly $670 million and could take place as early as the coming months, the report claimed. In the process, the partners may opt to sell their stakes in one or multiple tranches, depending on investor appetite, the report said.
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As per markets regulator Securities Exchange Board of India (Sebi) requirements, Adani and Wilmar have until February next year to cut their combined holding to 75%. The report said citing people in the know, “Considerations are ongoing, and details such as the size of the stake sale and timing could still change.”
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Adani and Wilmar’s stakes together account for nearly 88% of the company’s shares but Sebi requires that large firms must have at least 25% of shares available to the public within three years of the date of the listing. Adani Wilmar- which was established in 1999- makes Fortune brand cooking oils, wheat flour, pulses, rice and sugar and owns 23 plants across 10 states in India.
