Olam gets nod from final jurisdiction to divest 44.58% of Olam Agri to Saudis

[SINGAPORE] Olam Group has secured all required regulatory approvals from a total of 21 jurisdictions for its proposed US$1.8 billion sale of 44.58 per cent of its agribusiness unit Olam Agri to a Saudi fund. “The regulatory approvals in respect of the remaining one jurisdiction has been obtained,” Olam said on Thursday (Apr 16).

The proposed sale is expected to be completed “in due course” and is the first of two tranches in Olam’s planned US$2.6 billion disposal of its remaining 64.57 per cent stake in Olam Agri to Saudi Agricultural and Livestock Investment Company (Salic).

The state-owned Saudi investment firm bought 35.43 per cent of the unit for US$1.3 billion in December 2022.

Olam – which was co-founded by Singapore tycoon Sunny Verghese – had as at January obtained approvals from all jurisdictions save for two. As at February, it had approvals from all but one jurisdiction.

The first tranche of its disposal of the agribusiness unit involves the divestment of some 1.5 billion ordinary shares of Olam Agri and is set to raise Salic’s interest in the unit to 80.01 per cent, up from the current 35.43 per cent.

The deal was originally expected to be completed in the fourth quarter of 2025, subject to shareholder and regulatory approvals, and translates to a US$4 billion equity valuation for the entire Olam Agri.

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Olam secures bulk of regulatory approval for proposed 44.58% stake sale of Olam Agri

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Within three years of completing the first tranche, Olam will sell its remaining 19.99 per cent stake in Olam Agri through a call/put option, which Verghese said will happen without doubt.

Olam shares ended Wednesday 1.1 per cent or S$0.01 higher at S$0.89, before the news.