Olam Group to sell stake in agri unit

SINGAPORE: Commodity trader Olam Group plans to sell a 35% stake in unit Olam Agri to Saudi Agricultural and Livestock Investment Co for US$1.24bil (RM5.23bil), paving the way for an initial public offering (IPO) and demerger of the unit.

The deal implies a valuation of US$3.5bil (RM14.8bil) for Olam Agri, one of three operating groups formed in early 2020 as the result of a reorganisation.

“Secondary placement for Olam Agri would lead to an immediate unlocking of value for our shareholders, set a benchmark valuation for future IPO and demerger of Olam Agri,” said Sunny Verghese, the group’s chief executive.

Rothschild & Co advised on the transaction, the company said in a statement. — Reuters