Olam Group unveils updated re-organisation plan following US$2.58B sale to SALIC
This re-organisation is part of a multi-year transformation that began in January 2020 when Olam announced the restructuring of its diverse operations into three distinct business units.
SINGAPORE – Olam Group Limited, a leading food and agribusiness supplier of food, ingredients, feed, and fibre, has announced a major update to its ongoing reorganisation strategy following the proposed sale of its remaining 64.57% stake in Olam Agri to the Saudi Agricultural & Livestock Investment Company (SALIC).
The transaction, disclosed on February 24, 2025, is expected to generate gross cash proceeds of approximately US$2.58 billion and marks a critical milestone in the Group’s long-term plan to maximise shareholder value.
Under the updated strategy, Olam Group will use around US$2 billion from the proceeds to deleverage the Remaining Olam Group, aiming to make it completely debt-free and self-sustaining.
In parallel, the Group will invest US$500 million in equity into its food ingredients arm, ofi (Olam Food Ingredients), to bolster its balance sheet and support strategic initiatives.
These may include a potential dual listing of ofi on the stock exchanges in Europe and Singapore, subject to market conditions and regulatory approvals.
The updated plan also includes the responsible divestment and monetisation of all remaining businesses and assets under the Remaining Olam Group. The proceeds from these divestments will be progressively returned to shareholders through special dividends.
Olam has reaffirmed its commitment to responsibly unlocking value and will pursue this phase with discipline, ensuring asset transfers align with broader shareholder interests.
This re-organisation is part of a multi-year transformation that began in January 2020 when Olam announced the restructuring of its diverse operations into three distinct business units: ofi, Olam Agri, and the Remaining Olam Group.
The separation was completed by January 2022. Since then, Olam has made significant progress in its capital unlocking strategy, including the sale of a 35.43% minority stake in Olam Agri to SALIC for US$1.3 billion in December 2022, as well as the disposal of its holdings in ARISE IIP and ARISE IS for US$189 million in early 2023.
In addition, certain assets, including a sugar milling business in India and an edible oil refinery in Mozambique, were transferred into Olam Agri between 2023 and 2024, in preparation for the full divestiture to SALIC.
The proposed sale of the remaining stake in Olam Agri will be executed in two tranches: an immediate 44.58% stake for US$1.78 billion, and the remaining 19.99% through a call/put option within three years at the same valuation with a 6% internal rate of return.
Olam also confirmed that it will re-initiate share buybacks, pending shareholder approval at the upcoming annual general meeting.
The Group’s leadership has emphasised that these efforts are aimed at fortifying the financial structure of the Remaining Group while positioning ofi for sustained growth and global expansion.
The company will continue to issue updates as material developments unfold.
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