On Monday, Adani Enterprises Limited (AEL) revealed its disinvestment plans from the joint venture business with Wilmar International Limited regarding Adani Wilmar Limited (AWL). This major deal is the first large-scale transaction for the Gautam Adani-led firm after the DoJ charged the Adani Group in November. The transaction was completed on December 30 and should produce more than $2 billion of cash for AEL, representing the next big step in the company’s ongoing strategic evolution.
Accordingly, the company has signed a definitive agreement with Lance Pte. Ltd., a subsidiary of Wilmar International through AEL and its wholly-owned subsidiary Adani Commodities LLP (ACL). Lence will purchase 31.06% of AWL’s paid-up equity share capital through a call or put option for all paid-up equity shares of ACL owned by AWL. Further, With reference to the minimum public shareholding, AEL will be required to sell another 13% of its equity stake in AWL. After going through these two steps, AEL will completely sell off its 44% share in AWL.
For its part, AEL said that the transaction formed part of its ongoing process of rationalising its efforts to its focus areas and freeing up capital, which would be actively redeployed across core business units. The monies generated from the said transaction will be used to spur growth in the various strategic sectors as we continue to seek other infrastructural and related industry opportunities in energy, utilities, transport and logistics, among others. This strategic move will also assist AEL in gaining a more coherent incubation plan as the company further hires more attention to consumer service segments, including Adani Airports and Adani Digital, targeting a total market of about 350 million consumers.
It has emerged in the wake of several other capital-intensive fundraising exercises by AEL and other members of the Adani Group, such as the $ 500 million raised in October 2024.
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