Adani Group is allegedly in talks with a number of international consumer goods corporations about selling its full 43.97 percent interest in Adani Wilmar. The agreement is likely to be completed within a month.
According to The Economic Times, the company, led by Chairman Gautam Adani, expects to pay $2.5-3 billion for the joint venture interest. Adani Wilmar is a joint venture between the firm and Singapore-based Wilmar International that owns the popular Fortune brand of edible oils. Wilmar also has a 43.87 percent stake in the company. In January 1999, the JV was formed.
According to a source, the group intends to leave a few businesses in order to spend heavily in core priority areas such as infrastructure. Disinvestment in Adani Wilmar is one of the plans. The proceeds are intended to be used for additional investments rather than debt reduction.
For the past few months, reports have circulated that the group is abandoning non-core assets to generate a liquidity cushion. This came after the Hindenburg Research study resulted in a $150 billion loss of value for investors.