Press Release

• Olam Group has completed the Tranche 1 sale of a 44.58% stake in Olam Agri to SALIC for approximately US$1.88 billion, based on an implied 100% equity valuation for Olam Agri of US$4.00 billion and closing adjustments

• Olam Agri becomes majority 80.01% owned by SALIC and a 19.99% owned associated company of Olam Group

• At completion of Tranche 2 within three years, Olam Agri will become a 100% owned subsidiary of SALIC

• Olam Group remains focused on executing the Updated 2025 Re-organisation Plan to unlock value for shareholders

Olam Group Limited (“Olam Group”, “OGL”, the “Company”, or together with its subsidiaries, “the Group”) has announced that its wholly-owned subsidiary, Olam Holdings Pte. Ltd. has completed the Tranche 1 sale of 44.58% stake in Olam Agri to the Saudi Agriculture & Livestock Investment Company (“SALIC”), the food and agriculture investment arm of Public Investment Fund of the Kingdom of Saudi Arabia, for US$1.88 billion (approximately S$2.4 billion¹ ). This implies a 100% equity valuation for Olam Agri of US$4.00 billion (approximately S$5.11 billion¹ ) plus closing adjustments.  

The sale follows receipt of all necessary regulatory approvals and satisfaction of other closing conditions. Olam Agri becomes majority 80.01% owned by SALIC and a 19.99% owned associated company of Olam Group.

Olam Group retains a put option to sell its remaining 19.99% stake in Olam Agri to SALIC (“Tranche 2”) on the third anniversary of the completion of Tranche 1 at the base consideration of approximately US$799.6 million and additional option consideration plus a 6% IRR, providing certainty of Tranche 2 completion. SALIC also retains a call option to acquire the remaining 19.99% stake on or before the third anniversary at the same consideration. Olam Agri will become a 100% owned subsidiary of SALIC on completion of Tranche 2.

Yap Chee Keong, Deputy Chairman at Olam Group said: “The completion of the sale of Tranche 1 in Olam Agri to SALIC is another major step forward in delivering on our Reorganisation Plan. It realises significant value and will enable right-sizing of the capital structure of the Group. We will continue to focus on the responsible divestment and monetisation of the businesses in OGH² , and execute growth initiatives to enable ofi to realise its full potential value. We remain confident our Re-organisation Plan will unlock significant value for shareholders.”

Sunny Verghese, Co-Founder and CEO, Olam Agri said: “The completion of SALIC’s acquisition of Olam Agri is a transformative step forward to accelerate Olam Agri’s growth and strengthen our position as a leading global agri-business and integrated food security leader.”

“Olam Agri is focused on providing living essentials and daily necessities to consumers for meeting their growing demand for food, feed, fuel, fibre and adjacent agricultural products.

“With SALIC as a strategically aligned, committed long-term partner and food security leader, we can build on our historical track record of strong performance to further accelerate and scale our ambitions for profitable growth and value creation.”

Rothschild & Co Singapore Limited acted as the lead-financial advisor, along with Citigroup Global Markets Singapore Pte. Ltd and The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch as joint-financial advisors to OGL for this transaction