Adani Wilmar, Adani Enterprises shares in focus as Adani exits Wilmar JV

Shares of Adani Enterprises Ltd (AEL) and Adani Wilmar Ltd will be in focus on Tuesday morning after the group's flagship AEL decided to sell its entire 44 per cent stake in the latter's joint Venture (JV) to partner Wilmar for $2 billion. The agreement was signed between Adani Commodities LLP, Adani Enterprises Ltd and Wilmar International's wholly-owned subsidiary Lence Pte. As per shareholding pattern, AEL's wholly-owned arm Adani Commodities and Lence Pte owned 43.94 per cent stake each in Adani Wilmar Ltd as on September 30.

Together promoter holding in Adani Wilmar stands at 87.87 per cent. Adani Commodities and Lence have agreed to grant a simultaneous right of call option and put option to each other to have the option to exercise such a right for purchase and sale of all shares held by ACL at the time of exercise of such option up to a maximum of 403,739,517 equity shares constituting 31.06 per cent of the paid-up equity share capital of Adani Wilmar, at a price to be mutually agreed by the parties in writing, provided that such price per share shall not exceed Rs 305, in accordance with the terms set out in the agreement.

The price is lower than Rs 329.50 at which Adani Wilmar settled on Monday. Adani Enterprises shares climbed 7.65 per cent to close at Rs 2593.45 on Monday.

Towards the close of Monday's session, Adani Wilmar said Pranav V Adani, non-executive and non-independent director; and Malay Mahadevia, non-executive and non-independent director, representing ACL, have resigned from the board, along with their membership in various committees in which they are members.

Pranav V Adani and Malay Mahadevia confirmed that there was no other material reasons for their resignation other than the Wilmar agreement in their resignation letters. Adani Wilmar said the name of the company will be changed from “Adani Wilmar Limited” to “AWL Limited” or “AWL Agri Business Limited” or “Fortune Agri Business Limited” or such other name as approved by the Ministry of Corporate Affairs (“MCA”), subject to approval of shareholders, MCA and such other applicable statutory / regulatory authorities, as required.