Olam Group to sell 35% interest to Saudi livestock investment group
SALIC to pay $1.24 billion for stake
25 March 2022
1 minute read
By: Singapore-based commodity trader Olam Group said on Friday it plans to sell a 35% stake in unit Olam Agri to Saudi Agricultural and Livestock Investment Co(SALIC) for $1.24 billion, paving the way for an IPO and demerger of the unit, reported Reuters.
The deal implies a valuation of $3.5 billion for Olam Agri, one of three operating groups formed in early 2020 as the result of a re-organisation.
"Secondary placement for Olam Agri would lead to an immediate unlocking of value for our shareholders, set a benchmark valuation for future IPO and demerger of Olam Agri," said Sunny Verghese, the group's chief executive.
Rothschild & Co advised on the transaction, the company said in a statement.
Citing market volatility amid the war in Ukraine, Olam Group delayed Thursday's planned second-quarter listing of its food ingredients unit in London, which sources had said could raise about 2 billion pounds ($2.64 billion). Read full story
"Our partnership with Olam will expand SALIC's international footprint and increase access to strategic commodities," said Sulaiman AlRumaih, chief executive of SALIC, which is a unit of Saudi Arabia's Public Investment Fund.
