Olam Group has announced an agreement to sell a 35.43% stake in its agribusiness unit, Olam Agri, to Saudi Agricultural and Livestock Investment Company (SALIC) for $1.24bn.
Olam Agri specialises in grains, oilseeds, rice and animal feed. The company says the proceeds from the transaction will go towards improving its capital structure and reducing leverage.
Olam’s co-founder and CEO, Sunny Verghese, said: “Olam’s partnership with SALIC, a strategic, global investor, will position us for even stronger growth as we realise synergies across our complementary strengths”.
SALIC’s Group CEO, Sulaiman AlRumaih, added: “Our partnership with Olam will expand SALIC’s international footprint and increase access to strategic commodities. SALIC will leverage its international investments and local portfolio companies to strengthen its position across the agri-food value chain as a global food security player.”
The transaction is expected to be completed in 2022, subject to required approvals from relevant international authorities.
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