Olam Group, a state-owned company focused on agricultural products, announced on Monday ( Feb 24 ) that it will sell a 44.58 percent stake in Olam Agri for US$ 1.78 billion to Saudi Agricultural and Livestock Investment Company ( SALIC ).
In early buying, the company’s shares increased by 8.9 % to S$ 1.230, their highest level since January 6.
Olam Agri is valued at US$ 4 billion, which is higher than the US$ 3.5 billion it was valued at the time of the transaction in December 2022, when it sold a 35 % stake, and SALIC will receive an 80 % controlling stake in the company.
It will result in a obtain of US$ 1.84 billion for Olam Group, the agency said in an exchange processing.
Three years after the first step is finished, Olam Group did sell its remaining 19.99 percent stake in the company, giving SALIC complete control over Olam Agri, according to the statement.
Olam Group likely net US$ 3.87 billion in net money from the complete withdrawal of Olam Agri, including the 35.43 percent stake that SALIC sold to SALIC in December 2022.
According to SALIC Group CEO Sulaiman AlRumaih,” The whole consolidation arrangement of Olam Agri coincides with SALIC’s strategic goals of diversifying sources of important commodities… to secure a key position in the global grains business.”
Olam Group said it can now concentrate on ways to unlock value for the remaining companies, which is also planning to list its components firm, ofi, on the premium segment of the London Stock Exchange alongside a supplementary list in Singapore.
With this deal, Group CEO Sunny Verghese stated that” we can then concentrate our efforts on pursuing strategic alternatives to access price for the remaining Olam Group organizations and ofi, including the quest of an ofi IPO.”  ,