Press Release

    Olam To Divest Timber Assets In Gabon For US$18.0 Million

    Press release

    Olam International Limited (“Olam” or “the Company”), a leading global, integrated supply chain manager and processor of agricultural products and food ingredients, has entered into an agreement with a consortium of Chinese investors to sell part of its forestry and saw milling assets in Gabon for a gross consideration of US$18.0 million.

    The divestment, which is a part of Olam’s revised strategy to restructure the Wood Products portfolio, includes the sale of two saw mills in the Makokou region of Gabon, 2.5 hectares of land in the Special Economic Zone (SEZ) at Nkok, Gabon and associated forestry concessions.

    The transaction will result in a one-off loss of US$4.5 million on the sale of assets. In addition, the Company will record a one-time restructuring charge of US$6.5 million.

    The sale of the business is expected to generate annualised manufacturing and overhead cost savings of approximately US$13.5 million from FY2015, reduce the fixed capital invested in the business by US$22.5 million and release US$20.0 million of average working capital invested in this business.

    The transaction is expected to close in Q4 FY2014.

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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.

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