Olam secures bulk of regulatory approvals for stake sale in Olam Agri

Olam Group has secured regulatory approvals in most jurisdictions for its proposed sale of a 44.58 per cent stake in Olam Agri Holdings to Saudi Agricultural and Livestock Investment Company (SALIC), bringing the transaction closer to completion.

 The company said it has obtained approvals from all but two jurisdictions, noting that the deal remains subject to the fulfillment of outstanding conditions, including final regulatory clearances. Olam Agri Nigeria Limited, a major subsidiary of Olam Agri, is part of the global Olam Group’s extensive agribusiness operations.

 The update comes almost a year after Olam Group and Olam Agri entered into the $1.8 billion agreement with SALIC in February 2025. In a filing before the market opened, Olam said completion of the proposed sale would occur “as soon as practicable upon the satisfaction of all the conditions.”

 “Olam intends to complete the proposed sale as soon as practicable upon the satisfaction of all the conditions,” the Group’s Co-founder / Chief Executive Officer, Sunny Verghese, said in the bourse filing, while urging investors to “exercise caution” when trading, as the transaction is not yet guaranteed.

 Under the agreement announced in February 2025, Olam plans to dispose of all its remaining shareholdings in Olam Agri in two tranches. The first tranche involves the sale of 44.58 per cent, or about 1.5 billion ordinary shares, to SALIC for approximately $1.8 billion. The transaction implies an equity valuation of about $4 billion for the entire Olam Agri business.

The first tranche is expected to be completed in the fourth quarter of 2025 and would increase SALIC’s ownership in Olam Agri to 80.01 per cent from about 35.43 per cent currently. Within three years of the completion of this first tranche, Olam will sell its remaining 19.99 per cent stake through a call and put option arrangement.

As part of its latest financial update, Olam declared an interim dividend of S$0.02 per share, down from S$0.03 per share in the corresponding period a year earlier.

The group also reported that first-half profit from continuing operations surged by 574 per cent to S$323.8 million, as the business swung back into profitability.

Regulatory momentum around the deal has gathered pace. The Competition Commission of India has approved SALIC’s proposed indirect acquisition of 44.58 per cent, and up to 64.57 per cent, of the issued share capital of Olam Agri Holdings Limited. The European Commission has also authorised SALIC to acquire sole control of Olam Agri under the EU Merger Regulation, following its agreement to purchase an 80.01 per cent stake for about US$1.78 billion.

SALIC, a joint stock company incorporated in the Kingdom of Saudi Arabia and wholly owned by the country’s Public Investment Fund, said the investment would strengthen its role in global commodity supply chains and support its mission to bolster global food security.

The company has investments across farming, procurement and the trading of food commodities, with existing operations in India through LT Foods Limited.

Olam International Limited operates across the agricultural value chain in 65 countries, including Nigeria. Olam Agri, which is incorporated and headquartered in Singapore, functions primarily as a global merchant and processor of agricultural goods, with activities spanning the entire value chain.

Beyond the Olam Agri transaction, the group has said it intends to focus on an initial public offering of its other food ingredients business, Olam Food Ingredients (ofi), which was created in early 2020 and accounted for nearly 40 per cent of Olam’s total revenue in the 2024 financial year.

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