Saudi Arabia to Buy Control of Olam's Agribusiness for $1.8 billion; Shares Jump
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Shares in Olam Group jumped as much as 8.9% in early trading to S$1.23, their biggest daily jump since November last year.
The transaction values Olam Agri at $4 billion, higher than the $3.5 billion valuation in December 2022, opens new tab when it sold a 35% stake to SALIC, and will give SALIC an 80% controlling stake in the business.
The deal will result in a gain of $1.84 billion for Olam Group, the firm said in an exchange filing, opens new tab.
Including the 35.43% stake sold to SALIC in December 2022, opens new tab, Olam Group will unlock $3.87 billion in gross proceeds from the complete divestment of Olam Agri.
"The full acquisition agreement of Olam Agri aligns with SALIC's strategic objectives of diversifying sources of essential commodities ... to secure a key position in the global grains sector," SALIC Group CEO Sulaiman AlRumaih said in a statement.
Olam Group, which is also planning to list its ingredients business, ofi, on the premium segment of the London Stock Exchange alongside a secondary listing in Singapore, said it can now focus on ways to unlock value for the remaining businesses.
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