SINGAPORE —Singapore-based multinational Olam Group is considering selling its agricultural products business, Olam Agri, and may delay plans to list its food ingredients unit due to current market conditions.
According to reports from the Wall Street Journal, Olam Group is in early discussions to sell its entire 64.57 percent stake in Olam Agri to the state-run Saudi Agricultural and Livestock Investment Company (SALIC). Should the deal proceed, the Singapore-listed group might abandon plans to list Olam Agri on the Saudi Exchange.
In 2022, SALIC, wholly owned by Saudi Arabia’s Public Investment Fund (PIF), acquired a 35.43% stake in Olam Agri for US$1.24 billion, valuing the business at $3.5 billion. SALIC primarily invests in the agricultural sector and is active in agriculture, meat, and poultry.
As part of its reorganization efforts, Olam Group announced plans in 2021 to dual-list its Olam Food Ingredients business on the London and Singapore stock exchanges. However, experts predict that the initial public offering (IPO), initially estimated to exceed £1.0 billion, will likely be postponed to next year due to volatile market conditions.
“Olam Group, SALIC, and the Saudi Public Investment Fund did not immediately respond to requests for comment,” the report noted.
In February, Olam Group reiterated its commitment to listing both the food ingredients and agri units while retaining flexibility regarding the listing sequence and exploring other strategic options to unlock value.
Olam Food Ingredients supplies cocoa, coffee, nuts, spices, and dairy products to various companies in the food and beverage industry. It operates in around 50 countries across America, Africa, Europe, and Asia, with over 120 manufacturing facilities, generating over US$11.5 billion in revenue in 2023.
Olam Agri, which supplies grains, oilseeds, animal feed and protein, rice, edible oils, specialty grains and seeds, cottonwood products, rubber, and commodity financial services, operates in over 30 countries with a revenue of over US$23 billion in 2023.
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