Adani Enterprises considers selling stake in Wilmar and ending its $6 billion joint venture

9 Aug 2023 , 03:18 PM

Bloomberg News reported on Tuesday that Adani Enterprises is considering selling its interest in the consumer products joint venture it has with Wilmar International.

According to the article, the conglomerate has been thinking about selling its 44% interest in Adani Wilmar. The fast-moving consumer goods manufacturer, based in India, is currently valued at $6.17 billion.

After a sale, Indian billionaire Gautam Adani and his family might keep a small part for themselves, while Wilmar might elect to keep its ownership position, according to Bloomberg.

Adani Enterprises may decide to preserve its investment given that discussions are still in the early stages, according to the article.

Due to a sharp drop in the price of edible oil, Adani Wilmar revealed last week that it had lost money in the first quarter.

Following concerns about the corporate governance of the Adani Group from American short-seller Hindenburg Research, the market value of equities tied to the company dropped by around $147 billion earlier this year.

Hindenburg’s research was referred to the Adani Group as a ‘malicious attempt’ to harm the company’s reputation.

A Supreme Court of India panel stated in May that it was ‘not possible’ to draw a conclusion regarding regulatory failure in relation to the accusation of price manipulation.

For feedback and suggestions, write to us at [e-mail]