Company Briefs

Mitsubishi to take 80% in Olam grains unit

MITSUBISHI Corporation of Japan will invest US$64 million to take an 80 per cent equity stake in Olam International's wholly owned subsidiary, Olam Grains Australia (OGA). Olam will continue to hold a 20 per cent equity interest in OGA, which is valued at US$80 million, including working capital delivered at closing.

OGA is involved in origination, trading, logistics and marketing activities in Australia's grains industry. It also holds a 32.5 per cent stake in Newcastle Agri Terminal. The transaction is expected to be completed in early FY2015. Olam shares closed trading at $2.45 yesterday, up nine cents.