(Reuters) -India’s Adani Enterprises is exploring selling its stake in its consumer-staple joint venture with Wilmar International, Bloomberg News reported on Tuesday, citing people familiar with the matter.
According to the report, the conglomerate had been considering selling its 44% stake Adani Wilmar since a few months. The India-based maker of fast-moving consumer products is valued at $6.17billion.
Bloomberg reported that Indian billionaire Gautam Adani may retain a minority stake as a family member following a business sale. Wilmar might decide to retain their stake.
The report stated that Adani Enterprises could decide to retain its stake at this early stage of the discussions.
Adani Enterprises did not respond to Reuters’ requests for comment. Adani Wilmar, on the other hand, said it would prefer not to comment.
Adani Wilmar announced a loss for the first quarter last week. The steep drop in edible oil prices was to blame.
Adani Group-linked stocks have lost nearly $147 billion in market value earlier this year after U.S. short-seller Hindenburg Research raised questions on the group’s corporate governance.
Adani Group called Hindenburg’s report a “malicious attempt” at damaging its reputation.
In May, a Supreme Court of India panel said it was “not possible” to conclude regulatory failure on allegation of price manipulation.
(Reporting from Shubhendu Dashmukh, Bengaluru. Editing by ShounakDasgupta and Shilpamajumdar).
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