Olam sells stake in Indonesian sugar JV for up to $118m
It is expected to be completed by March.
Olam International has sold its remaining 50% equity stake in Indonesian sugar joint venture (JV) Far East Agri for a consideration between $114.71m (US$82.5m) and $118.19m (US$85m), according to a press release.
The stake will be bought by Mitr Phol Sugar Corporation, Olam’s JV partner for Far East Agri. The consideration was arrived at on a willing buyer-willing seller basis.
The transaction is expected to be completed by the end of March. From here, Far East Agri will cease to be an associated company of Olam. Olam will book a post-tax capital gain of approximately $52.16m (US$37.5m) to $55.64m (US$40m) upon completion.
The group’s earnings per share is also projected to rise from 15.98 cents to 17.61 cents upon the completion of the disposal.