New Delhi: The Adani Group is currently in talks with multiple global consumer goods companies to sell its entire 43.97% ownership in Adani Wilmar Ltd, the renowned owner of the famous Fortune brand known for its edible oils and packaged grocery products. Insiders suggest that a deal could be sealed within a month.
This conglomerate, with interests spanning from ports to renewable energy, expects a sale price between $2.5 billion to $3 billion for its stake in this joint venture with Singapore-based Wilmar International, which also holds an equivalent stake in Adani Wilmar Ltd.
Adani Wilmar’s stock price has declined, dropping from Rs 488 in mid-May to Rs 315 in recent trading, resulting in a market value of approximately $4.96 billion.
In a strategic move, the Adani Group plans to divest from certain businesses in order to channel more substantial investments into their core focus areas, primarily focused on infrastructure.
The proceeds from this potential sale are anticipated to be reinvested in other group ventures rather than used to reduce debt. Adani Wilmar, a prominent player in the edible oil sector, has a strong presence, reporting a net profit of Rs 607 crore and revenues of Rs 55,262 crore in the last fiscal year. However, in the second quarter of FY24, it reported a net loss of Rs 131 crore, following a loss in the first quarter of the current financial year as well.
This development occurs as Adani Group promoters consider selling stakes in non-core assets to create a financial safety net after a valuation dip triggered by a critical report from US short-seller Hindenburg Research. While the Adani Group refuted Hindenburg’s allegations, the report led to an estimated wealth erosion of around $150 billion for investors.