Press Release

    Olam International and Mitsubishi Corporation form partnership to grow Australian grains business

    Press release

    Olam International Limited (“Olam” or “the Company”) today announced a partnership with Mitsubishi Corporation of Japan (“MC”) in which MC will invest US$64.0 million for an 80.0% equity interest in wholly owned subsidiary, Olam Grains Australia (“OGA”). The partnership will leverage growth opportunities in the Australian Grains business.

    The enterprise valuation at 100% of OGA is US$80.0 million, including working capital delivered at closing. The price consideration was determined on a willing-buyer, willing-seller basis.

    OGA’s business comprises mainly origination, trading, logistics and marketing activities as well as a 32.5% stake in Newcastle Agri Terminal, which commenced operations in February 2014. Olam will continue to hold a 20.0% equity interest in OGA.

    MC develops and operates businesses globally across diverse fields including environment and infrastructure, industrial finance and logistics, energy, metals, machinery, chemicals, living essentials and business services. The Living Essentials Resources Division of MC’s Living Essentials Group will take the lead for MC in the new partnership.

    Olam’s President and Global Head of Grains Business, KC Suresh said: “Mitsubishi Corporation is our partner of choice in leveraging the growing Asian demand for grains and competing effectively in the Australian grain industry. Together, we plan to invest in upcountry procurement and logistics to scale up our local presence and further build a differentiated and competitive model in Australia.”

    MC’s partnership with and confidence in Olam, one of the world’s leading agri-businesses, reflects its positive view of the prospects offered by the Australian grain industry in relation to the overseas markets the Company serves. MC views the Olam-MC partnership as a strong foundation on which to build a profitable and sustainable grains business in Australia.

    Subject to standard closing conditions, the transaction is expected to be completed in early FY2015.

     

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    About Olam International Limited

    Olam International is a leading agri-business operating across the value chain, supplying various products across 16 platforms to over 13,600 customers worldwide. From a direct presence in more than 65 countries with sourcing and processing in most major producing countries, Olam has built a global leadership position in many of its businesses. Headquartered in Singapore and listed on the SGX-ST on February 11, 2005, Olam is a component stock in the Straits Times Index (STI), MSCI Singapore Free, S&P Agribusiness Index and the DAXglobal Agribusiness Index. Olam is the only Singapore firm to be named in the 2009, 2010 and 2012 Forbes Asia Fabulous 50, an annual list of 50 big-cap and most profitable firms in the region. It is also the first and only Singapore company to be named in the 2009 lists for the Global Top Companies for Leaders and the Top Companies for Leaders in the Asia Pacific region by Hewitt Associates, the RBL Group and Fortune.

    More information on Olam can be found at www.olamgroup.com.

    Olam is located at 9 Temasek Boulevard #11-02 Suntec Tower Two Singapore 038989,
    Telephone: +65 63394100, Facsimile: +65 63399755.

    About Mitsubishi Corporation:

    Mitsubishi Corporation (MC) has seven Business Groups which develop operations in the diverse fields of Global Environmental & Infrastructure; Industrial Finance, Logistics & Development; Energy; Metals; Machinery; Chemicals; and Living Essentials. In addition to these Business Groups, MC has also recently established its Business Service Group. Through these business groups and more than 600 subsidiaries and affiliates, MC serves customers around the world in virtually every industry.

    Issued on behalf of Olam International Limited by:

    WATATAWA Consulting, 28 Maxwell Road #03-03 Red Dot Traffic Building Singapore 069120

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