Olam to sell 44.6% stake in agribusiness to Saudi Arabia for $1.8 billion (updated)

Olam

23/02/2025 23:12

(Updates with more detail on the stake divestment)
       Feb 24 (Reuters) - Singapore-based Olam Group  OLAG.SI 
on Monday said it will sell a 44.58% stake in its agricultural
products business Olam Agri for $1.78 billion to state-owned
Saudi Agricultural and Livestock Investment Company (SALIC).
    The transaction, which values Olam Agri at $4 billion, will
give SALIC an 80% controlling stake in the business. The stake
sale will result in a gain of $1.84 billion for Olam Group, the
firm said in an exchange filing.
    Olam will divest its remaining 19.99% stake in the unit
three years after the completion of the first phase, giving
SALIC full control of Olam Agri, it said.
    Including the 35.43% stake sold to SALIC in December 2022,
Olam Group will unlock $3.87 billion in gross proceeds from the
complete divestment of Olam Agri.
    Olam Group also intends to list its ingredients business,
ofi, on the premium segment of the London Stock Exchange
alongside a secondary listing in Singapore.
    "With this transaction, we can now focus our attention on
seeking strategic options to unlock value for the remaining Olam
Group businesses and ofi, including the pursuit of an ofi IPO,"
Group Chief Executive Officer Sunny Verghese said.
    

 (Reporting by Sameer Manekar and Rishav Chatterjee in
Bengaluru; Editing by Will Dunham and Sam Holmes)
 ((Rishav.Chatterjee@thomsonreuters.com;))