File pic — Reuters
MUMBAI: Adani Enterprises Ltd is exploring selling its stake in its Mumbai-listed consumer-staple joint venture with Wilmar International Ltd, freeing up capital for their core business, according to people familiar with the matter.
The conglomerate has been considering a potential sale of its 44% stake in Adani Wilmar Ltd for a few months, the people said, asking not to be identified as the information is confidential.
Adani Enterprises’ shares are worth about US$2.6bil at the current share price, according to Bloomberg calculations.
Indian billionaire Gautam Adani and his family may retain a minority stake in a personal capacity following a sale, the people said.
Wilmar, the Singapore-headquartered food conglomerate co-founded by billionaire Kuok Khoon Hong in 1991, could decide to retain its stake in the business, one of the people said.
Deliberations are at an early stage and Adani Enterprises may decide to keep its stake, the people said.
An Adani Enterprises spokesman said the group won’t comment on market speculation. A representative for Wilmar declined to comment.
Shares of Adani Wilmar dropped as much as 4.8% and touched their lowest level since May 19 on Wednesday, following the Bloomberg News story.
The stock has fallen about 38% this year, valuing the company at around US$6bil.
Adani-linked companies had lost more than US$150bil in market value at one point after US-based short seller Hindenburg Research levelled fraud allegations against the business empire. The Adani Group denied any wrongdoing.
Adani is back to making deals now that the shares have stabilised. Ambuja Cements Ltd said Aug 3 it will acquire Sanghi Industries Ltd at an enterprise value of US$605mil.
Last month, Bain Capital agreed to buy the 90% stake the family held in Adani Capital and Adani Housing.
Adani Wilmar raised about 36 billion rupees (US$435mil) in an initial public offering in Mumbai in 2022. Adani and Wilmar’s stakes together account for nearly 88% of the company’s shares.
The Securities and Exchange Board of India requires that large firms must have a minimum public shareholding of at least 25% within five years of the date of the listing. — Bloomberg
