Moneycontrol News
Adani Group may acquire the sugar business of Shree Renuka Sugars from Wilmar Sugar Holdings, according to a report by Mint.
Currently, Wilmar Sugar, which is a subsidiary of Singapore-based Wilmar International, owns 39 percent stake in Shree Renuka, one of India’s largest sugar manufacturers.
Even as the parent company is launching an open offer to help Wilmar Sugar get a controlling stake in Shree Renuka, it is simultaneously in talks with Adani Wilmar (a 50:50 joint venture between the two groups), to market Shree Renuka’s Madhur brand, the report suggests.
Moneycontrol could not independently verify the report.
Wilmar has sought to leverage Adani’s distribution network and marketing expertise, the report added.
Wilmar has decided to launch the open offer on June 4, after Competition Commission of India (CCI)’s approval for acquisition of a strategic stake in Renuka. The offer will close on 15 June.
Due to the falling domestic sugar prices and the company’s aggressive expansion plans for South America, Shree Renuka has been reeling under debt. In a bid to bring down the debt to Rs 2,364 crore, Wilmar had recently raised its stake in the firm.
Launched in 1999, Adani Wilmar markets products such as edible oil, rice, pulses and soya chunks, under the Fortune brand.
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