The acquirer currently holds 43.94 per cent of the paid-up equity share capital of AWL Agri Business
To acquire a 20 per cent stake in AWL Agri Business from Adani Group through its wholly-owned subsidiary Lence Pte, Wilmar International has sought approval from the fair trade regulator Competition Commission of India (CCI).
The development follows the Adani Group’s decision to sell a 20 per cent stake in AWL Agri Business (formerly Adani Wilmar) to Wilmar International for Rs 7,150 crore, as informed by the company. Now, CCI has notified that the approval for the deal has been sought.
“The acquirer (Lence Pte) proposes to acquire up to a maximum of 20 per cent of the paid-up equity share capital, and a minimum of 11 per cent of the paid-up equity share capital of the target (AWL Agri Business),” as per a notice under review on CCI’s website.
The statement noted that the acquirer currently holds 43.94 per cent of the paid-up equity share capital of the target. Accordingly, post the proposed combination, the acquirer will hold a maximum of 63.94 per cent and a minimum of 54.94 per cent paidup equity share capital of the AWL Agri Business.
The parties involved in the transaction noted that the proposed combination will not lead to any competition concerns, and the delineation of relevant markets is not required. AWL Agri Business is engaged in fast-moving consumer goods (FMCG) business comprising primarily of edible oil, food, FMCG and industry essential segments.
CCI shared that the Acquirer belongs to the Wilmar Group, which does not have a direct business presence in India except through the target and Shree Renuka Sugars (SRS). SRS is engaged in the business of milling, refining and selling of sugar.
