Olam Group, a leading agribusiness company based in Singapore, has announced that it has received an offer from the Saudi Agricultural and Livestock Investment Company (SALIC) to acquire the remaining shares in Olam Agri.
Gatekeepers News reports that SALIC currently owns a 35.4% stake in Olam Agri, a position it obtained in 2022 through a Strategic Supply & Cooperation Agreement with Olam.
This development follows a report by Bloomberg regarding ongoing negotiations for a potential deal. In a statement to the Singapore Exchange (SGX), Olam Group confirmed the receipt of a non-binding indicative offer from SALIC.
The statement indicated that Olam is actively considering the offer and is working with its appointed advisers to evaluate the possibility of selling the remaining stake in its agribusiness division.
“While the company is reviewing and in discussions regarding a potential sale of its stake in the Olam Agri business, the company would like to stress that no definitive terms or formal legal documentation have been agreed upon between the parties to date,” the statement said. “There is no certainty that a sale of the company’s stake in the Olam Agri business will proceed or will materialize.”
Olam Agri, one of the two key divisions of Olam Group alongside Olam Food Ingredients, handles a diverse portfolio, including managing the Queensland Cotton business, which operates six gins, as well as multiple warehousing facilities across Queensland and New South Wales. It also manages a pulse packing and trading operation.
SALIC’s connection with Olam Group began in 2022 when the Saudi firm invested US$1.24 billion to acquire the 35.4% stake in Olam Agri. At the time, SALIC’s Group CEO, Sulaiman Al Rumaih, emphasized that the investment was part of the company’s strategy to advance food security.
“SALIC’s key strategic objective is to contribute to global and domestic food security through long-term strategic investments in the local and international markets,” Al Rumaih stated.
