Olam secures $2.4b deal, offloads 44.6% Olam Agri stake to SALIC

SALIC now holds 80.01% of Olam Agri.

Olam Group Limited has completed the sale of a 44.58% stake in Olam Agri Holdings to Saudi Agriculture & Livestock Investment Company (SALIC) for about $2.4b (USD1.88b), it said on 27 April.

The deal implies a 100% equity valuation of $5.11b (USD4.00b), including closing adjustments and dividends.

Following completion, SALIC holds 80.01% of Olam Agri, whilst Olam Group retains a 19.99% associate stake. Olam Agri has ceased to be a subsidiary of Olam Group.

Olam Group said total cash proceeds amounted to $2.4b (USD1.875b), comprising a base consideration of $2.27b (USD1.783b) and additional consideration and adjustments of $118m (USD92.2m).

The remaining 19.99% stake is subject to a put and call option structure, with completion of the second tranche expected within three years. SALIC will fully own Olam Agri upon completion of that tranche.

Olam Group said the transaction is part of its broader reorganisation plan to simplify its structure and unlock value.

Financial advisers to the transaction included Rothschild & Co, Citigroup Global Markets Singapore, and HSBC Singapore.