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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