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Olam completes sale of remaining 50% stake in Indonesian sugar JV for US$82.5 million
AGRI-FOOD giant Olam International has sold its remaining 50 per cent stake in its Indonesian sugar joint venture (JV), Far East Agri for US$82.5 million - with US$2.5 million contingent on satisfaction of an arrangement provided in the sale-and-purchase agreement, said the company in a bourse filing on Tuesday.
The buyer – its JV partner Mitr Phol Sugar – had in December 2017 invested US$100 million to take up a 50 per cent stake in Far East Agri, and had entered a sales agreement with Olam with an initial total consideration of between US$82.5 million and US$85 million.
With the completion of the sale, Far East Agri will cease to be an associated company of Olam.
The group had previously said that the sale is in line with Olam’s six-year strategic plan announced in 2019 with a focus on businesses with sustainable growth potential, and divesting and/or restructuring de-prioritised assets and businesses.
Olam shares closed up S$0.14 or 11 per cent at S$1.41 on Tuesday.