Adani exits $2b consumer goods venture

India’s Adani Group is set to withdraw from the consumer goods joint venture with Singapore’s Wilmar International (WLIL.SI) in a deal worth $2 billion, as the Indian conglomerate shifts its focus to its core infrastructure business.

Adani Enterprises (ADEL.NS) will sell a 13 per cent stake in Adani Wilmar (ADAW.NS), known for the Fortune brand of sunflower oil, to meet India’s minimum public shareholding rules.

According to the statement, Wilmar, a major agribusiness company in Asia, will purchase Adani’s remaining 31 per cent take at a price of up to 305 rupees per share.

Singapore’s Wilmar will buy Adani’s remaining 31 per cent stake for a price of up to 305 rupees per share. This price represents a 7.2 per cent discount to Monday’s closing price and values the stake at $1.44 billion.

The divestment follows allegations by US authorities that founder Gautam Adani and top executives were involved in a bribery scheme to secure Indian power contracts. The Adani group has denied the charges as “baselessز”

Attribution: Reuters

Subediting: Y.Yasser