Adani to shift flagship’s food business to Wilmar JV
Adani Enterprises will transfer its food business to Adani Wilmar, issuing shares of Adani Wilmar to its shareholders as compensation. This move increases public shareholding in Adani Wilmar from 12% to 23%, reducing promoter stake from 88% to 77%. Shareholders will receive 251 Adani Wilmar shares for every 500 Adani Enterprises shares held. The restructuring aligns with Adani’s strategy of separating businesses once they are established, with future mergers and transfers planned.
Shareholders of Adani Enterprises will be issued shares of Adani Wilmar as consideration for the transfer of the foods business. Adani Enterprises owns about 44% of Adani Wilmar, in which Singapore’s Wilmar holds a stake. However, once the scheme is implemented, shareholders of Adani Enterprises will directly own Adani Wilmar shares.
MUMBAI: Adani Enterprises, the flagship of the Gautam Adani-run conglomerate, will separate the food business and combine it with the publicly-listed Adani Wilmar. The foods unit includes the trading and supply of edible oil & allied commodities, investments in Adani Commodities, and other assets and liabilities associated with the business. Shareholders of Adani Enterprises will be issued shares of Adani Wilmar as consideration for the transfer of the foods business.Adani Enterprises owns about 44% of Adani Wilmar, in which Singapore’s Wilmar holds a stake. However, once the scheme is implemented, shareholders of Adani Enterprises will directly own Adani Wilmar shares. The move will help promoters -Adani Commodities and Lence (belonging to Wilmar) – of Adani Wilmar to bring down their stake in the company to 77% from 88%. According to Sebi rules, a listed company has to have a minimum public shareholding of 25%. Adani Wilmar was listed in Feb 2022 and has time till Feb 2025 to meet the public float norms. Adani Enterprises shareholders will receive 251 shares of Adani Wilmar for every 500 shares they hold of Adani Enterprises. After completion of the scheme, the stake of public shareholders in Adani Wilmar will go up to 23% from the current 12%. The share entitlement ratio was recommended by RBSA Valuation Advisors and fairness opinion was issued by Vivro Financial Services. The demerger is in line with Adani Enterprises’ incubation strategy which includes demerging of the businesses once they are self-sustained and properly established. In the past, Adani Enterprises had demerged Adani Green Energy and Adani Energy Solutions. Separately, Adani Enterprises will be merging Adani Green Technology and Adani Emerging Business with itself. It will also transfer the solar cells manufacturing subsidiary Adani Tradecom to Adani New Industries.
