Temasek group has 80.4% Olam stake after offer closes

Singapore

TEMASEK Holdings' offer for Olam International closed yesterday with the Singapore investment company and its concert parties holding 80.4 per cent of Olam's issued shares, after acceptances.

With Olam now a Temasek unit, a tumultuous chapter closes for the agri-commodities trader, which has had trouble shaking off the shadow of shortseller Muddy Waters' attackin late 2012.

"We are pleased with the positive response from Olam shareholders and the level of acceptances received to-date," said Rohit Sipahimalani, director of Breedens, the Temasek unit making the acquisition. "We thank all Olam security holders for their response, and look forward to Olam's continued success in its strategy and business in the years ahead."

Temasek Holdings on March 14 led a consortium including Olam's management and its founding firm to launch a cash offer for all Olam shares that it did not already own.

The offer at $2.23 a share valued the company at $5.33 billion.

Temasek said that the offer was to provide Olam with a stronger and more stable shareholder base to support its strategy and business model for the long term, and has maintained that it prefers to keep Olam listed.

Olam on May 15 reported Q3 earnings to have more than doubled to $396.1 million, from $108.5 million, boosted by exceptional items. Revenue inched up 2.5 per cent to $4.8 billion.

Excluding the one-off items, its profit after tax and minority interest fell to $102.2 million, 15.9 per cent lower than the previous year, owing to higher depreciation and amortisation costs and tax expenses.