Olam Group’s shares tumbled the most in almost five years after the agricultural commodities trader denied allegations of a multibillion dollar fraud in Nigeria and ordered a review into the matter.

The company categorically denies the allegations about Olam Nigeria and its subsidiaries, and refutes all “baseless and inflammatory statements,” it said in a filing to the Singapore exchange on Monday (Sep 11). The group’s shares slumped around 10 per cent, the biggest intraday drop since October 2018, before paring some losses.

Olam Group’s business in Nigeria ranges from animal protein to rice farming and grains, and contributes more than US$3 billion of annual revenue. Given the nature of the allegations, the board has directed the audit committee to conduct a review assisted by external counsel and auditors, the company said.

Shares in Olam Group were 7.8 per cent lower by 3.06 pm, and were on track for the biggest daily decline since March 2020, after sliding for four straight months till August. Bloomberg