Wilmar International’s subsidiary Lense will acquire a 20% stake in a unit of India’s Adani Enterprises for 108.74 billion rupees ($1.62 billion) according to a bourse filing on July 17.

Lence, together with Andani Commodities (ACL) and Andani Enterprises have entered into a definitive share purchase agreement on July 17 to acquire 259,935,721 equity shares or 20% of the stake in AWL Agri Business, formally known as Adani Wilmar.

Last December, Lens entered into an agreement with Andari Commodities to acquire up to 403,739,517 shares or 31.06% of the share capital in AWL Agri Business. In January, ACL sold 175,601,314 shares or 13.51% of its stake to Lence for a price of 276.51 rupees per share.

Upon completion of the acquisition on July 17, Lens will hold a maximum of 63.94% and a minimum of 54.94% of the existing paid-up equity share capital of AWL.

The group says that in respect of the AWL shares not taken up by Lence, Lence will endeavour to bring in strategic partners / identified investors; however, for the avoidance of doubt, this will not constitute an obligation on Lence.

Wilmar says that the acquisition of Lence of the AWL shares will be funded from internal sources as well as bank borrowings. Wilmar will recognise a gain on deemed disposal of about US$1.23 billion, with a corresponding increase in net assets of about US$1.33 billion.

Based on the audited financial statements of AWL as at March 31, 2025, the Wilmar Group will recognise a negative net tangible assets attributable to AWL of approximately US$0.36 billion, on the assumption that Lence acquires 142,964,647 shares (11% of AWL) at 275 rupees per share.

Previously, Wilmar said that the rationale for the acquisition is because AWL holds a dominant position in the Indian FMCG market, and the rural market in India presents significant growth opportunities for the company. AWL is well positioned to capture a substantial market share, by leveraging Wilmar’s global operations and distribution network, Wilmar said.

Wilmar Intl jumps 2.34% at 10:32 am, July 18th.