Corporate Grapevine     

Published: November 30, 2023
Updated: November 30, 2023

KKR, Apex Partners, Bain Capital in race toTake over Adani Wilmar

Private equity firms KKR, Apax Partners and Bain Capital have joined the race to buy out a 51 per cent stake in Adani Wilmar — an equal stake joint venture between Wilmar International of Singapore and the Adani group. As of now, both partners own a 44 per cent stake each and will dilute their holdings in the company with each maintaining a small stake.

This transaction is set to be completed by the end of the current financial year – providing a lot of cash to both Adani and Wilmar. The company is valued at Rs 51,400 crore — far lower than the Rs 81,000 crore commanded by it in January this year. However the share price of the company had crashed, along with other Adani group shares in the wake of the research report by US short seller Hindenberg Research accusing the Adani group of stock manipulation and accounting fraud. The transaction will take place at Rs 600 a share, as compared to the current market price of Rs 395 a share.

The Adani group will use the money to repay the debt taken to acquire Ambuja Cements and other promoter-level loans. Wilmar, on the other hand, will exit India with a huge profit.