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

[SINGAPORE] Olam Group said it has obtained approvals from all jurisdictions – save for two – for its sale of 44.58 per cent of Olam Agri Holdings to the Saudis.

The announcement comes almost a year after Olam Holdings and Olam Agri entered into the US$1.8 billion deal with the Saudi Agricultural and Livestock Investment Company (Salic) in February 2025.

The company announced on Monday (Jan 5), before the market opened, that the completion of the proposed sale depends on meeting various conditions, such as obtaining necessary regulatory approvals. 

Olam intends to complete the proposed sale “as soon as practicable upon the satisfaction of all the conditions”, said Olam’s co-founder and chief executive officer, Sunny Verghese, in a bourse filing. In February 2025, the food and agribusiness giant announced that it had entered into a deal to dispose of all its remaining shareholdings in Olam Agri in two tranches.

The first tranche involves a 44.58 per cent stake, or 1.5 billion ordinary shares, which Salic will acquire for about US$1.8 billion. This implies an equity valuation of US$4 billion of the whole of Olam Agri.

The first transaction was expected to be completed in the fourth quarter of 2025 and would result in Salic controlling 80.01 per cent in Olam Agri, up from around 35.43 per cent currently. 

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Within three years of the completion of this first tranche, the group will sell the remaining 19.99 per cent stake in Olam Agri through a call/put option. 

In Monday’s statement, Verghese urged investors to “exercise caution” when trading, as the completion of the sale is not yet guaranteed and remains subject to the conditions outlined in the sale and purchase agreement. 

Shares of Olam Group , which holds about 64.6 per cent of Olam Agri, closed flat at S$0.95 on Monday.