Olam Group has entered into an agreement for the sale of its remaining 64.57% stake in Olam Agri to Saudi Agriculture & Livestock Investment Company (SALIC) for a total of approximately US$1.78 billion (S$2.35 billion).
The deal includes a phased divestment, with the first tranche of 44.58% to be completed in Q4 2025. Upon completion of the sale, SALIC will acquire an 80.01% controlling stake in Olam Agri.
In addition to the initial sale, Olam Group will retain a 19.99% stake, which will be sold to SALIC after three years, at the Closing Valuation of Olam Agri plus a 6% Internal Rate of Return (IRR). This structure ensures that Olam Group realizes total gross cash proceeds of an estimated US$2.58 billion (S$3.41 billion) across both tranches, providing significant capital for future investments.
The overall transaction values Olam Agri at an implied 100% equity valuation of US$4.00 billion (S$5.28 billion), reflecting a 23% premium over Olam Group’s current market capitalization of US$3.25 billion (S$4.30 billion).
This represents a 14% uplift from SALIC’s previous acquisition of a 35.43% stake in Olam Agri in 2022, which had closed at a valuation of US$3.50 billion (S$4.67 billion).
Upon completion of Tranche 1, Olam Group is expected to realize a gain of US$1.84 billion (S$2.43 billion) on the sale, which will be reflected in the company’s equity reserves.
This move will allow Olam Group to refocus its attention on its remaining operations, particularly the potential pursuit of an initial public offering (IPO) for its remaining food ingredients business, ofi.
Sunny Verghese, Olam Group’s Co-Founder and Group CEO, stated, “Since SALIC’s investment in Olam Agri in 2022, our partnership with SALIC has unveiled new avenues of growth.
With its strategic mandate as a global agrifoods investor and related complementary strengths, SALIC and Olam Agri share the same vision and focus on sustainable sourcing and commitment to meet the rising demand for food, feed and fibre. Importantly, this transaction is transformative for Olam Agri.
“The sale of Olam Agri to SALIC marks another key milestone in Olam’s Re-organisation journey announced in January 2020. With this transaction, we can now focus our attention on seeking strategic options to unlock value for the Remaining Olam Group businesses and ofi, including the pursuit of an ofi IPO.”
In his remarks, Group CEO of SALIC, Sulaiman AlRumaih noted, “The full acquisition agreement of Olam Agri aligns with SALIC’s strategic objectives of diversifying sources of essential commodities, strengthening supply chain integration, and enhancing logistical efficiency across its local and international investments.”
According to him, the acquisition underscores SALIC’S goal to become a major player in the global grains industry.
“We are confident that this partnership will contribute to achieving national and global objectives while continually enhancing production efficiency for the benefit of all stakeholders,” he added.
In 2023, Olam Agri reported trading volumes exceeding 39 million metric tonnes, generating revenues of S$31.3 billion and earnings before interest and tax (EBIT) of S$967.7 million.
Following the completion of both tranches of the sale, Olam Agri will become a fully owned subsidiary of SALIC, but Olam Group will continue to hold its stake in ofi and the remaining Olam businesses, including Olam Global Holdco, Nupo Ventures, and Mindsprint.
The deal, however, remains subject to shareholder and regulatory approvals, with the transaction expected to close in the fourth quarter of 2025.
Olam Agri plays an active role in the global food, feed, and fibre sectors, specializing in the sourcing, processing, and trading of commodities like grains, oilseeds, rice, edible oils, cotton, and more. With over 33 years of experience, Olam Agri operates in high-growth emerging markets, focusing on sustainable practices and food security.
Olam Group is a leading global agri-business with a network spanning over 60 countries. It supplies food, ingredients, feed, and fibre to around 22,000 customers. The company is headquartered in Singapore and listed on the Singapore Exchange (SGX). It is also included in the FTSE4Good Index Series.
SALIC (Saudi Agriculture & Livestock Investment Company) is a food and agriculture investment arm of Saudi Arabia’s Public Investment Fund (PIF). Established in 2009, SALIC focuses on enhancing food security and resilience through global and domestic investments.
