Singapore-based agribusiness large Olam Group has confirmed receiving a suggestion from the Saudi Agricultural and Livestock Funding Firm (SALIC) to purchase out the remaining stake in Olam Agri.
SALIC, a state-owned entity, at present holds a 35.4% stake in Olam Agri, having acquired it in 2022 as a part of a Strategic Provide & Cooperation Settlement between the 2 events.
The announcement got here after Bloomberg reported {that a} potential deal was being negotiated.
In an announcement launched to the Singapore Alternate (SGX), Olam Group confirmed receiving a non-binding indicative supply from SALIC. The assertion added that Olam is at present exploring the supply with the assistance of its appointed advisers, evaluating the attainable sale of the remaining stake in its agribusiness division.
“Whereas the corporate is reviewing and in discussions concerning a possible sale of its stake within the Olam Agri enterprise, the corporate want to stress that no definitive phrases or formal authorized documentation have been agreed upon between the events to this point,” the assertion mentioned. “There is no such thing as a certainty {that a} sale of the corporate’s stake within the Olam Agri enterprise will proceed or will materialize.”
Olam Agri, one of many two key divisions of Olam Group alongside Olam Meals Substances, handles a various portfolio, together with managing the Queensland Cotton enterprise, which operates six gins, in addition to a number of warehousing amenities throughout Queensland and New South Wales. It additionally manages a pulse packing and buying and selling operation.
SALIC’s reference to Olam Group started in 2022 when the Saudi agency invested US$1.24 billion to amass the 35.4% stake in Olam Agri. On the time, SALIC’s Group CEO, Sulaiman Al Rumaih, emphasised that the funding was a part of the corporate’s technique to advance meals safety. “SALIC’s key strategic goal is to contribute to international and home meals safety by long-term strategic investments within the native and worldwide markets,” Mr. Al Rumaih acknowledged.
Again story
Wale Edun, Minister of Finance and Coordinating Minister of the Economic system (CME), acknowledged on Sunday, December 29, 2024, after assembly with President Bola Tinubu in Ikoyi, Lagos, that “what we’ve introduced again is funding. What we’ve introduced again is overseas trade. What we’ve introduced again is jobs for Nigerians.”
The minister’s assertion comes after the high-level delegation to Saudi Arabia, to observe up on President Tinubu’s earlier engagements with His Royal Highness Prince Mohammed bin Salman Al Saud, Crown Prince and Prime Minister in Riyadh, on November 10, 2023, on the sidelines of the Saudi-African Summit and once more in Riyadh, on November 12, 2024, on the sidelines of the Extraordinary Arab and Islamic Summit, the place the 2 sides reviewed methods of cooperation. Additionally they talked about plans and concepts for strategic agriculture investments, amongst different objects on the summit’s agenda.
Nairametrics understands the minister might have been referring to the 2022 acquisition of 35% stake at $1.2 billion in Olam Agri.
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