Olam Agri Closes $1.8bn Deal with Saudi, Propelling Shares to New Highs - Thepodiummedia

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Post published:February 25, 2025
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In a landmark move that underscores the increasing importance of the Persian Gulf region as a market for agricultural commodities, Singapore-listed Olam Group has completed the sale of a 44.58 percent stake in its agricultural arm, Olam Agri, for $1.78 billion (S$2.35 billion).

The deal, finalized on Monday, values Olam Agri at $4 billion and grants Saudi Agricultural and Livestock Investment Company (Salic)—a unit of the Kingdom’s sovereign wealth fund—an 80 percent controlling interest.

The transaction not only reflects a strategic pivot by Olam Group towards unlocking value in its diversified business portfolio but also generated a gain of $1.84 billion for the conglomerate, according to an official exchange filing.

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With this sale, the group’s stake in Olam Agri is poised to be fully divested when it sells the remaining 19.99 percent three years after the initial phase, ultimately unlocking gross proceeds of $3.87 billion from the complete exit of its agricultural products unit.

Olam Group’s strategic restructuring does not stop here. The company also plans to list its ingredients business, Ofi, on the premium segment of the London Stock Exchange, with a concurrent secondary listing in Singapore. This move is expected to further enhance liquidity and provide a robust platform for growth, aligning with the company’s broader vision of streamlining its operations and focusing on core business segments.

Market reactions have been overwhelmingly positive. Shares in Olam Group surged by 8.9 percent in early trading, reaching S$1.23, marking the largest daily gain since November of the previous year. The significant uptick in share price underscores investor confidence in the strategic divestment and the company’s forward-looking plans.

As the global agricultural landscape continues to evolve, particularly with Saudi Arabia’s strong emphasis on food security, Olam Group’s decisive move to divest a major stake in Olam Agri is seen as a critical step towards adapting to new market dynamics and tapping into lucrative growth opportunities.

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Morak Babajide-Alabi is a graduate of Mass Communication with a Master of Arts Degree in Journalism from Napier University, Edinburgh, United Kingdom. He is an experienced Social Media practitioner with a strong passion for connecting with customers of brands.

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He started his brand management career at Owena Bank as Media Relations Manager before joining Prudent Bank (now Polaris Bank) as the pioneer Head of Corporate Affairs.

The British Council appointed him as Head of Communication and Marketing to co-ordinate branding and reputation management activities at its Lagos, Abuja, Kano and Port Harcourt offices.

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Ademola obtained a M.Sc. Degree in Digital Marketing & Web Analytics from Dublin Institute of Technology in 2016, and the Master of Communication Arts degree of the University of Ibadan in 1997. He had previously obtained a Higher National Diploma (with Upper Credit) in Mass Communication from Ogun State Polytechnic, Abeokuta.

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