In a major strategic move, Singapore-listed Olam Group has announced the sale of a 44.58% stake in its agricultural products business, Olam Agri. It will offer this to Saudi Agricultural and Livestock Investment Company (Salic) for US$1.78 billion (S$2.35 billion).
Moreover, this deal values Olam Agri at US$4 billion and gives Salic an 80% controlling stake, strengthening Saudi Arabia’s food security strategy.
Full Divestment In Three Years
Olam will divest its remaining 19.99% stake in Olam Agri three years after the first phase, giving Salic full ownership.
Furthermore, combined with a 35.43% stake sale in December 2022, the total proceeds from Olam Agri’s divestment will reach US$3.87 billion.
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Olam Shifts Focus To Ofi IPO
With agribusiness shifting under Saudi control, Olam Group is now focusing on its food ingredients business, Ofi, which it plans to list on the London Stock Exchange’s premium segment, alongside a secondary listing in Singapore.
“Now, we can focus on unlocking value for our remaining businesses and pursuing an Ofi IPO,” said Olam’s CEO, Sunny Verghese.
Moreover, Olam Agri, a key player in global food supply chains, deals in grains, seeds, edible oils, and pasta production.
Saudi Arabia, which relies heavily on food imports, sees this acquisition as a step towards securing stable agricultural supply chains.
Ultimately, as Olam restructures, this deal marks a pivotal moment in global agribusiness, aligning corporate and national strategies in response to evolving food security needs.
