Adani Wilmar offers more than $756m to buy debt-ridden Ruchi Soya

Adani Wimar has offered to purchase Ruchi Soya for a sum of more than Rs60bn ($756m), making the company the new highest bidder for the acquisition of the debt-ridden, India-based edible oil and soya foods manufacturer.

The proposal from Adani Wimar, a joint venture (JV) between India-based Adani Group and Singapore-based Wilmar, follows Patanjali’s offer of more than Rs57bn ($718m), reported Economic Times.

Bidding originally opened earlier this week after the creditors allowed Adani Wilmar and Patanjali to raise their offers.

Ruchi Soya produces soya products under Nutrela brand and edible oil under Sunrich brand. The company currently owes more than Rs90bn ($1.13bn) to creditors.

Patanjali made the highest bid during the initial bidding round, offering Rs45bn ($567m). However, Adani Wilmar made the highest bid during the following round.

Patanjali has been given the option of raising its offer while Adani Wilmar can make the first refusal.

Adani could either sign an agreement with the lenders after an increased bid or choose to reject the deal.

The bidder is usually chosen based on the highest price in bankruptcy situations. However, the creditors here have followed the Swiss bidding method, under which bidders can raise their bids or atleast match each other’s offer.

If Adani Wilmar wins this bid, it will be a huge acquisition for the Singapore-based commodities firm in India. Wilmar has recently acquired Shree Renuka Sugars, a leading sugar producing company in India.

Patanjali has been given time until Saturday to raise its bid from the one proposed by Adani Wilmar.

If Patanjali raises its bid, then Adani Wilmar will have another 48 hours to respond with an improvised bid.