Photo: BloombergThe Edge | 24 February 2025
Olam to sell 44.58% stake in Olam Agri to Saudi Agriculture & Livestock Investment Company for US$1.78 bil
by Felicia Tan
Olam Group announced on Feb 24 that it will sell its remaining 64.57% stake in Olam Agri to Saudi Agriculture & Livestock Investment Company (SALIC), a state-owned Saudi investment firm.
The group will first sell its 44.58% stake — or 1.51 billion shares — SALIC for around US$1.78 billion ($2.35 billion), which will see SALIC owning a controlling stake of 80.01% in Olam Agri.
The sale puts Olam Agri’s implied 100% equity valuation at US$4 billion and represents a 14% premium to the US$3.5 billion valuation when SALIC first acquired a 35.43% stake in Olam Agri in December 2022 for U$1.29 billion.
After the completion of the 44.58% stake sale, Olam Group has the option to sell its remaining 19.99% stake in Olam Agri to SALIC three years later.
The put option to sell is exercisable at a base consideration of US$799.6 million, an amount of additional consideration equal to US$197,162 per day multiplied by the number of days from and including June 1 up to the completion date of the agreement.
The amount should also include a 6% internal rate of return (IRR).