Press Release

    Strong Endorsement for Olam’s Rights Issue

    Press release

    Olam International Limited (“Olam” or “the Company”), a leading global, integrated supply chain manager and processor of agricultural products and food ingredients, is pleased to announce the final results of its renounceable underwritten rights issue of US$750 million in principal amount of 6.75 per cent. bonds due 2018 (the “Bonds”), in the denomination of US$1.00 for each Bond, with 387,365,079 free detachable warrants (the “Warrants”), each Warrant carrying the right to subscribe for one new ordinary share in the capital of the Company (the “New Share”) at an exercise price of US$1.291 for each New Share, on the basis of 313 Bonds of principal amount of US$1.00 each with 162 Warrants for every 1,000 existing ordinary shares in the capital of the Company (the “Shares”) held by the Entitled Shareholders, which for the avoidance of doubt excludes treasury Shares held by the Company, as at 2 January 2013, fractional entitlements to be disregarded (the “Rights Issue”).

    At the close of the Rights Issue on 21 January 2013, the Company received valid acceptances and excess applications for 826,855,759 Bonds with Warrants (representing approximately 110% of the US$750 million in principal amount of Bonds offered by the Company), underlining the strong confidence demonstrated by existing shareholders and new investors who bought rights in the nil-paid rights trading period. The valid acceptances include 100% of the pro-rata entitlements of significant shareholders Temasek and Kewalram, and those of Sunny Verghese, Olam’s Group Managing Director and CEO.

    On the results of the Rights Issue, Sunny Verghese said: “We are pleased to announce the positive results of this rights offering, which indicate strong support from the bond and equity markets for Olam. We had announced this offering, which was sub-underwritten by Temasek, and I am pleased to say that this support has also been extended by a large number of institutional and retail investors as is evident from the acceptance and application levels. We now move forward to focusing on delivering results and enhancing value for the Company’s investors.”

    The Bonds and Warrants are expected to be listed and to commence trading on 31 January 2013.


    • Document
      Strong Endorsement for Olams Rights Issue

    Subscribe to Our News Alerts