Wilmar to acquire up to 20% of Mumbai-listed joint venture with Adani

[SINGAPORE] Agri-specialist Wilmar International has agreed to acquire up to 20 per cent of the shares held by India’s Adani Commodities in the two companies’ joint venture (JV), for 275 rupees per share.

Wilmar’s wholly owned unit Lence will purchase a maximum of 259.9 million shares in the Mumbai-listed JV, AWL Agri Business (which was formerly known as Adani Wilmar).

The move comes after Adani Commodities announced its exit from the JV in December 2024.

Following the announcement, AWL shares rallied 6 per cent to close at 278.30 rupees on Thursday (Jul 17).

Adani Commodities will also sell its remaining 10.42 per cent stake in AWL to “a set of pre-identified investors” prior to the transaction with Wilmar.

After the deal, Adani Commodities will have completely divested itself of the JV, while Lence’s stake in AWL will range from 54.94 per cent to 63.94 per cent.

At the price of 275 rupees per share, Wilmar expects to recognise a gain on deemed disposal of about US$1.23 billion, with a corresponding increase in net assets of US$1.33 billion.

Depending on the final number of shares acquired, the group also foresees goodwill on consolidation that will result in a reduction in net tangible assets.

Assuming that Lence acquires an 11 per cent stake in AWL for 275 rupees a share, Wilmar will record negative net tangible assets attributable to AWL of about US$0.36 billion.

This is based on AWL’s audited financial statements as at Mar 31, 2025.

Wilmar shares on the Singapore bourse ended Thursday (Jul 17) at S$2.99, up 0.7 per cent.