Mitsubishi acquiring 20% of Olam for S$1.53b
Strategic partnership will see it paying Olam S$915m for a 12% stake and S$611m to Kewalram Chanrai Group for 8% stake
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JAPAN's Mitsubishi Corp is taking a 20 per cent stake in Temasek-controlled Olam International in two separate deals totalling some S$1.53 billion, fuelling the consolidation trend in the otherwise moribund agri sector.
Under the first deal, the strategic partnership will see the Singapore mainboard-listed agri-business group issuing about 332.73 million new shares - 12 per cent of Olam's enlarged capital - to the Japanese trader for S$915 million or S$2.75 apiece, valuing Olam at S$7.63 billion. The issue price is a premium of 54.5 per cent over the volume weighted average price of S$1.78 based on trades done on the Singapore Exchange on Aug 26 up to the trading halt at 10.05am on Aug 27. The amount raised is a new growth capital for Olam.
