Olam Group Limited has announced an updated reorganisation plan to unlock greater shareholder value, following the proposed sale of its remaining 64.57% stake in Olam Agri to the Saudi Agricultural & Livestock Investment Company (SALIC).
The $2.58 billion transaction, announced on February 24, 2025, will provide the foundation for Olam Group’s renewed strategic direction. The plan focuses on three core objectives:
- Strengthen Capital Structure: Allocate ~$2 billion to eliminate debt in the Remaining Olam Group, ensuring financial independence.
- Boost ofi’s Growth: Invest $500 million in equity to support ofi’s strategic initiatives, including potential dual listings in Europe and Singapore, to capitalize on its resilient, high-growth business model.
- Maximize Shareholder Returns: Divest Remaining Olam Group assets responsibly over time, distributing net proceeds to shareholders via special dividends.
Funding will primarily come from the Olam Agri sale proceeds and asset divestitures. The plan’s execution, including timelines, remains subject to market conditions, regulatory approvals, and shareholder consent where needed. OGL will also resume share buybacks, seeking shareholder approval for mandate renewal at the upcoming annual general meeting.
The debt-free structure will enable sustainable operations for the Remaining Olam Group, while the $500 million investment in ofi will fuel innovation in its value-added food and beverage ingredients segment, navigating challenges like volatile commodity prices. The phased divestment of Remaining Olam Group assets aims to optimize shareholder value amid global economic uncertainties.