Olam International shares to cease trading ahead of Mar 16 return as Olam Group

WEDNESDAY (Mar 9) marks the last day of trading in shares of Olam International O32 : O32 0%before the group returns to the SGX-ST (Singapore Exchange Securities Trading) a week later on Mar 16 to trade under its new security name, Olam Group.

The counter ended the day at S$1.76, down S$0.02 or 1.1 per cent. 

With effect from 9 am on Mar 10, shares of Olam International will be suspended.

Its transfer books and register of members will be closed at 5 pm the following day to determine the entitlements of Olam's shareholders in respect of the group's scheme of arrangement for its proposed restructuring, which was sanctioned in court last week on Mar 3.

Current Olam International shares will be converted to the same number of the reorganised Olam Group's shares, which are due to commence trading on the SGX-ST at 9 am on Mar 16. Shares of Olam International are expected to delist on the same day.

These procedures come as part of the agri-business giant's ongoing restructuring plans which will see it spinning off its Olam Food Ingredients (OFI) unit and subsequently, the Olam Global Agri (OGA) unit.

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Once OFI and OGA are spun off, the group intends to focus on investing in startups involved in digital technology and sustainability.

OFI consists of the company's cocoa, coffee, edible nuts, spices and dairy businesses. It is due for a primary listing on the premium segment of the London Stock Exchange, along with a concurrent listing on the Singapore Exchange by H1 FY2022.

Shareholders of the new entity Olam Group will receive OFI shares following the unit's initial public offering (IPO) and demerger.

Olam Group will continue to hold OGA and gestate its assets and businesses, which the group plans to monetise in part or full. It is also evaluating the option of introducing strategic minority partners through the sale of a significant minority stake in OGA.

According to Olam International co-founder Sunny Verghese, the group intends to seek an IPO for OGA 6 months after OFI goes public. OGA comprises the grains and animal feed, edible oils, rice, cotton and commodity financial services businesses.

Olam International had previously announced that its decision to rejig its portfolio into 3 distinct business units - Olam Group, OFI and OGA - would simplify the group's structure and give it opportunities to unlock long-term value.

READ MORE: 

• Olam posts H2 profit of S$264.9m on reorganisation-led turnaround

• Olam adds raft of banks to IPO of US$18b food unit

• Olam's reorganisation will help unlock units' full potential, says its CEO

• Olam to seek shareholders' approval for listing of food ingredients arm

• Olam bags US$150m club loan allowing for demerger, IPO of Olam Food Ingredients