Indian edible oils business Ruchi Soya announced that the planned sale of the business to Adani Wilmar is still on track, despite the rumors spread by the local media suggesting the would-be purchaser has pulled out.
As per the media reports in 23 December said that Adani, who is the successful bidder in an auction to buy up for sale, Ruchi Soyais planning to withdraw its offers. This is because it has entered into a corporate insolvency resolution process in December 2017 and cited “delays” in closing the resolution process. And 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.
It was also part of the rumour that the FMCG giant Patanjali Ayurved, is the second-highest bidder for Ruchi. The reports also mentioned that Patanjali is still interested in the asset and is willing to match Adani’s offer if allowed to.
Ruchi Soya said in its response that “the resolution plan submitted by the successful resolution applicant (Adani Wilmar) is currently pending for approval and will be discussed at a meeting on 15 January.” The bid is estimated to be worth US$854m.