Singapore-based Olam Group will invest US$500 million equity into Olam Food Ingredients (ofi) in the next 3 months, as part of its reorganisation plan amid the disposal of Olam Agri.
The US$500 million investment, funded by internal resources, is aimed to “position ofi to pursue profitable growth” so that Olam can resume the delayed ofi initial public offering (IPO) plans in both Europe and Singapore, according to Olam CEO Sunny Verghese.
Verghese added, “At this point of time… our plan is to make sure that we are able to raise capital in ofi first, then pursue other strategic options, including concurrent listing of ofi in Europe and in Singapore, while we also keep a room open for other private options.”
Olam will continue pivoting ofi towards value-added ingredients and food solutions business from global commodity sourcing, as its priority of the value-creation plan for the unit.
Meanwhile, Olam has re-initiated share buybacks after renewing its share buyback mandate in the annual general meeting on 25 April.
The proceeds from the disposal of Olam Agri, estimated at US$2.6 billion gross, will be distributed as dividends to its shareholders after its assets being responsibly divested at fair market values.
