Olam to sell permanent water rights in Australia for A$490m

Singapore

A UNIT of Olam International is selling 89,085 megalitres (about 89 billion litres) of its permanent water rights in Australia to a related entity of the Public Sector Pension Investment Board (PSP Investments), one of Canada's largest pension investment managers, for A$490 million (S$452.7 million).

The deal is expected to be completed in December 2019, whereupon Olam will receive cash proceeds of A$490 million. The agri and food giant is also expected to book a one-time pre-tax capital gain of about A$311 million.