Adani Enterprises has finalized its complete exit from AWL Agri Business Limited (formerly Adani Wilmar) through transactions worth ₹15,729.00 crores. This strategic move marks a significant shift in the group's portfolio and investment strategy.

Two-Phase Stake Sale

The exit is being executed in two phases:

1. Sale to Wilmar International: Adani Commodities LLP, a subsidiary of Adani Enterprises, will sell an 11-20% stake to a subsidiary of Wilmar International, its long-standing joint venture partner in AWL Agri Business. This sale will be at ₹275.00 per share.

2. Sale to Diverse Investors: The remaining 10.42% stake will be sold to pre-identified investors.

Financial Details

The total value of the transactions is ₹15,729.00 crores.

Previous Divestment

This exit follows a previous divestment made by Adani Enterprises, indicating a phased approach to exiting the business.

Future Implications

Upon completion of these transactions, AWL Agri Business Limited will cease to be an associate of Adani Enterprises. This move aligns with the Adani Group's focus on core infrastructure and energy sectors.

Market Impact

The exit of Adani Group from AWL Agri Business is expected to have implications for both entities:

1. For AWL Agri Business: The company will now operate without the direct involvement of the Adani Group, potentially leading to changes in its strategic direction.

2. For Adani Group: This divestment allows the group to reallocate significant capital towards its core infrastructure projects.

The successful execution of this stake sale demonstrates the Adani Group's ability to manage large-scale transactions and its commitment to reshaping its business portfolio in line with its long-term strategic goals.

Investors and market analysts will be closely watching how both AWL Agri Business and the Adani Group utilize this transition to drive their respective growth strategies in the coming months.

Adani Enterprises Limited (AEL) has announced a significant move in its portfolio management, signing a share purchase agreement to sell its entire stake in AWL Agri Business Limited (formerly known as Adani Wilmar Limited) to Wilmar International Limited's wholly-owned subsidiary, Lence Pte. Ltd.

Deal Highlights

Transaction Details

The deal involves Adani Commodities LLP (ACL), a wholly-owned subsidiary of Adani Enterprises, selling between 11% and 20% of AWL's issued and paid-up equity share capital to Lence. The final number of shares to be purchased will be determined by Lence, with a minimum of 142,964,647 shares (11%) and a maximum of 259,935,721 shares (20%).

In a recent development, Adani Group has sold a 20% stake in AWL Agri Business to Wilmar International for ₹7,150.00 crore at ₹275.00 per share. This sale is part of Adani's plan to exit the FMCG business. As a result of this transaction, Wilmar now becomes the majority shareholder with a 64% holding in AWL Agri.

Strategic Implications

1. Complete Exit: Post-transaction, ACL will completely exit AWL, which will cease to be an associate company of both ACL and Adani Enterprises.

2. Additional Share Sale: For any remaining shares between 11% and 20% not purchased by Lence, efforts will be made to bring in strategic partners or investors.

3. Residual Stake Disposal: The remaining 10.42% stake held by ACL will be sold to pre-identified investors prior to the deal's consummation.

Financial Impact

• Total Realization: ₹15,729.00 crore for ACL
  • ₹10,874.00 crore from the current transaction
  • ₹4,855.00 crore already realized through an offer for sale

Regulatory Compliance

The deal's completion is subject to customary conditions, including Lence obtaining all applicable anti-trust approvals for the acquisition of the Sale Shares.

Agreement Terminations

Upon the transaction's consummation, the parties have agreed to terminate:

1. The shareholders' agreement dated April 12, 1999, along with subsequent amendments and adherence deeds.
2. The Inter-se Agreement dated July 30, 2021.

This strategic move by Adani Enterprises marks a significant shift in its investment portfolio, potentially allowing the company to reallocate resources to other growth areas or strengthen its financial position.

Note: All financial figures are in Indian Rupees (₹).