SINGAPORE – Olam Group Limited , OGL (the “Company”, or together with its subsidiaries, “the Group”) today announced that its wholly-owned subsidiaries, Olam Holdings Pte. Ltd. and Olam Agri Pte. Ltd. have entered into a definitive agreement for the sale of a 44.58% stake in Olam Agri to SALIC, the food and agriculture investment arm of Public Investment Fund of the Kingdom of Saudi Arabia (“KSA”), for a base consideration of approximately US$1.78 billion (S$2.35 billion3) (“Tranche 1”).
This implies a 100% equity valuation for Olam Agri of US$4.00 billion (S$5.28 billion).
OGL will, upon the completion of the sale of Tranche 1, have a put option to sell its remaining 19.99% stake in Olam Agri to SALIC (“Tranche 2”) on the third anniversary of the completion of the sale of Tranche 1 at the Closing Valuation2 plus a 6% IRR, providing certainty of proceeds to OGL.
SALIC will, upon the completion of the sale of Tranche 1, have a call option to acquire the remaining 19.99% stake in Olam Agri on or before the third anniversary of the completion of the sale of Tranche 1 at the same consideration.
In addition, the parties have agreed based on the full year 2024 performance to allow a dividend payout from Olam Agri in respect of profits generated in the second half of 2024, of up to a maximum of US$110 million.
Post completion of the sale of Tranche 2, Olam Agri will be a 100% owned subsidiary of SALIC. OGL continues to hold a 100% interest in ofi and the Remaining Olam Group of companies, comprising Olam Global Holdco, Nupo Ventures and Mindsprint.
Olam Agri is one of the three operating groups formed in early 2020 following the announcement of the Re-organisation of the Group to unlock and maximise its long-term value. Led by its purpose, ‘Transform food, feed, and fibre for a more food secure and sustainable future’, Olam Agri is a key agribusiness player, focused on high-growth consumption markets with a deep understanding of market needs, a global origination, trading and marketing footprint, with best-in-class logistics, processing and risk management capabilities.
It transforms food, feed, and fibre to create value for its customers, enables farming communities to prosper sustainably, and strives for a more food secure future.
In 2023, Olam Agri generated volumes in excess of 39 million metric tonnes, revenues of S$31.3 billion and Earnings Before Interest and Tax of S$967.7 million.
Completion of the sale of Tranche 1 is conditional upon, inter alia, approval by OGL’s shareholders and other customary closing conditions, including regulatory approvals. Subject to these conditions being fulfilled, the sale of Tranche 1 is expected to complete in Q4 2025.
Rothschild & Co Singapore Limited is acting as the lead-financial advisor, along with Citigroup Global Markets Singapore Pte. Ltd and The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch as joint-financial advisors to OGL for this transaction.
OGL’s Co-Founder and Group CEO, Sunny Verghese said: “Since SALIC’s investment in Olam Agri in 2022, our partnership with SALIC has unveiled new avenues of growth. With its strategic mandate as a global agrifoods investor and related complementary strengths, SALIC and Olam Agri share the same vision and focus on sustainable sourcing and commitment to meet the rising demand for food, feed and fibre. Importantly, this transaction is transformative for Olam Agri.
“The sale of Olam Agri to SALIC marks another key milestone in Olam’s Re-organisation journey announced in January 2020. With this transaction, we can now focus our attention on seeking strategic options to unlock value for the Remaining Olam Group businesses and ofi, including the pursuit of an ofi IPO.”
Group CEO of SALIC, Sulaiman AlRumaih said: “The full acquisition agreement of Olam Agri aligns with SALIC’s strategic objectives of diversifying sources of essential commodities, strengthening supply chain integration, and enhancing logistical efficiency across its local and international investments. Furthermore, this acquisition underscores SALIC’s ambition to secure a key position in the global grains sector.”
“Olam Agri, a global player in trading essential commodities, aligns with SALIC’s strategic investment approach, which prioritises high-potential companies addressing future food security needs through innovation and integrated supply chains both locally and globally. We are confident that this partnership will contribute to achieving national and global objectives while continually enhancing production efficiency for the benefit of all stakeholders.”
