Olam to act as technical partner in Saudi flour mill consortium

MAINBOARD-LISTED Olam International intends to be a technical partner in the privatisation of a Saudi flour mill, the agri-food group said on Thursday.

Olam is part of a consortium that last month won the bid to privatise state-owned Second Milling Company, which was sold for 2.13 billion riyals (S$750 million).

Consortium partners are now in negotiations on the definitive terms of the agreement, with talks expected to be completed in the next six months, Olam told the bourse.

Olam, which has a minority stake in the deal, went in with National Agricultural Development Company, Al Rajhi International for Investment Company and Abdul Aziz Al Ajlan Sons Co for Commercial and Real Estate Investment to bid for the mill.

Saudi Arabia also sold a separate flour milling business, Fourth Milling Company, for 859 million riyals in the same exercise.

Olam added in its statement that it would issue an update on the flour mill matter "as and when there is a material development".

Shares closed on Thursday at S$1.70, up by S$0.01 or 0.59 per cent, before the news.