Wilmar to become AWL Agri majority shareholder

Yahoo

6 days ago

Wilmar International is set to become the majority owner of India-based AWL Agri.
The Singapore group has agreed to buy more shares in the Fortune edible-oils maker from Indian conglomerate Adani Enterprises.
Wilmar International and Adani Enterprises had been partners in the former Adani Wilmar venture until December.
Adani Enterprises decided to leave the alliance to invest further in energy, utilities, transport and logistics.
At the time, Wilmar International struck a deal buy 31.1% of the venture, which has been renamed AWL Agri.
A month later, Adani Enterprises sold another 13.5% stake.
In a stock-exchange filing yesterday (17 July), Wilmar said it held 43.9% of AW Agri, with Adani Enterprises retaining 30.4%.
Wilmar has agreed to purchase another tranche of shares, representing a further 11-20% of AWL Agri, at Rs275 ($3.19) a share.
When this new deal is finalised, Wilmar will hold between 54.9% and 63.9% of the business. The company said it will 'endeavour to bring in strategic partners/ identified investors' for the chunk of the new stake it does not take up.
The remaining 10.4% Adani Enterprises owns in AWL Agri will be sold 'to a set of pre-identified investors', the Indian group said.
Established in 1999, the now AWL Agri is headquartered in Ahmedabad. The business runs 24 factories in 15 cities. Its operations span edible oils, a wider range of food products and a third division called Industry Essentials, which takes in chemicals.
Earlier this week, AWL Agri reported its fiscal first-quarter results covering the three-month period to the end of June.
Revenue rose 22% to Rs17.06bn despite a 2% fall in volumes. The company booked higher revenues across its three divisions, although volumes from its edible oils and food and FMCG units fell.
'The company witnessed a temporary volume decline, primarily influenced by the consolidation of its regional rice operations and muted consumer demand. Encouragingly, the core categories delivered healthy volume growth and revenue rose 21% year on year, driven by higher edible oil realisations,' MD and CEO Angshu Mallick said.
Profit after tax fell 24% to Rs238m.
Last month, Wilmar agreed to acquire UK consumer goods company PZ Cussons' 50% equity stake in their Nigerian edible-oils joint venture for a cash consideration of $70m.
"Wilmar to become AWL Agri majority shareholder" was originally created and published by Just Food, a GlobalData owned brand.
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