(Reuters) -India’s Adani Group will exit its consumer goods joint venture with Wilmar in a $1.3 billion deal, giving control to the Singaporean firm, it said on Thursday.
The sale was announced in December and comes amid Adani’s plans to bolster its infrastructure business.
As part of the deal, Adani Commodities, a unit of Adani Enterprises, will sell a 30.42% stake in the JV, AWL Agri Business. Wilmar-owned Lence will buy up to a 20% stake and rest will be sold to a set of “pre-identified investors,” Adani Enterprises said.
Wilmar, through Lence, will hold an up to 63.94% stake in AWL Agri after the sale is completed.
Lence will buy the 20% stake for around $832 million, at 275 rupees a share, a 4.8% premium to AWL Agri’s closing price on Wednesday. Wilmar will recognise a gain of $1.23 billion from the deal, it said in an exchange filing.
AWL Agri shares closed up 6.7% on the day after rising as much as 8.1% earlier in the session.
($1 = 86.0510 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia Cheema)
