(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 decide to retain his stake in Wilmar after selling a portion of the business.
Adani Enterprises might decide to keep its stake if the negotiations are still in their early stages, according to a report.
Adani Enterprises, Wilmar and Adani Wilmar have not responded to Reuters’ requests for comment. Adani Wilmar has said that it will not comment on this report.
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 and editing by Shounak dasgupta, Shilpa Majumdar, and Shubhendu deshmukh from Bengaluru)
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