Adani Enterprises (AEL) has announced its exit from FMCG joint venture Adani Wilmar by selling its entire 44% stake. This transaction is expected to be worth around $200 crore.

As part of the agreement, Lence (Lence Pte), a wholly owned subsidiary of Wilmar International, will acquire 31.06% of the paid up equity shares of Adani Wilmar from Adani Commodities (ACL), a wholly owned subsidiary of Adani Enterprises.

Apart from this, Adani Enterprises will sell 13% of its shares in Adani Wilmar to comply with the minimum public shareholding requirements through Offer for Sale. That is, Adani Enterprises will exit Adani Wilmar Limited by selling its entire 44% stake in Adani Wilmar Limited.

What is the agreement?
Adani Enterprises, a subsidiary of Adani Commodities (ACL) and Lens Private Limited, a wholly owned subsidiary of Wilmar International, have entered into an agreement whereby Lens will acquire all the paid up equity shares of Adani Wilmar, including shares held by ACL.

Adani Enterprises, subsidiary Adani Commodities (ACL) and Lens, a wholly owned subsidiary of Wilmar International (AWL), have entered into an agreement whereby Lens will exercise call options or puts in respect of a maximum of 31.06% of the existing paid up equity capital of AWL. As of the date of exercise of the option, Adani will acquire the shares of Wilmar held with ACL.

At what price will the shares be sold
However, Adani and Wilmar will explore and evaluate alternative methods to accelerate the sale and purchase of shares, as long as these options comply with law. This will happen when Adani Wilmar completes the minimum public float under the relevant rules.

The filing said that the shares will be sold to Lens at a price mutually agreed by the parties, provided that the price per share does not exceed Rs 305. As of September, based on shareholding pattern on BSE, Adani Commodities (ACL) and Lence held 43.94% stake.

Apart from this, Adani’s nominee directors Pranav Adani and Malay Mahadevia will step down from the board of Adani Wilmar. After Adani’s exit, steps will be taken to change the name of the company.

This news was announced shortly before the market closed. Shares of Adani Enterprises closed at Rs 2,592.35 on Monday with a gain of 7.57%.

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