Up-for-sale Indian edible oils business Ruchi Soya said the planned sale of the business to Adani Wilmar is still on track despite reports in local media suggesting the would-be purchaser has pulled out.
A report in India’s The Economic Times on 23 December said Adani, the successful bidder in an auction to buy Ruchi Soya after it entered into a corporate insolvency resolution process in December 2017, was withdrawing its offer, citing “delays” in closing the resolution process.
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Another media report said that Adani, which sells cooking oil in India under the Fortune brand, was concerned the delay would see a deterioration in asset quality at Ruchi Soya.
The Economic Times further suggested local FMCG giant Patanjali Ayurved, the second-highest bidder for Ruchi, had written to resolution professional Shailendra Ajmera from accountancy firm EY and the lenders to Ruchi Soya to say that it is still interested in the asset and is willing to match Adani’s offer if allowed to.
It quoted “a person aware of the development”.
But asked for clarification on the matter by the Bombay Stock Exchange (BSE), Ruchi Soya said in its response that “the resolution plan submitted by the successful resolution applicant [Adani Wilmar] is currently pending approval and will be discussed at a meeting on 15 January.
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By GlobalDataIn further clarification to the BSE it said the company’s operations continued to be managed as an on-going concern.
India’s competition authority gave the all-clear to Adani’s bid for Ruchi Soya in August.
The bid is estimated to be worth US$854m.
