Olam Group Sells 44.6% Stake in Agribusiness to Saudi Fund for $2.35 Billion

Olam Group, based in Singapore, announced on February 24, 2025, that it will sell a 44.58% stake in its agricultural products arm, Olam Agri, to the Saudi Agricultural and Livestock Investment Company (Salic) for US$1.78 billion (S$2.35 billion). Salic is a subsidiary of Saudi Arabia’s sovereign wealth fund. This deal values Olam Agri at US$4 billion and will result in Salic gaining an 80% controlling stake in the business.

The sale marks a significant step for Olam Group, as it will unlock a gain of US$1.84 billion. The company intends to divest its remaining 19.99% stake in Olam Agri three years after the first phase, ultimately giving Salic full control over the agribusiness. This deal follows a similar transaction in December 2022, where Olam sold a 35.43% stake to Salic, bringing total gross proceeds from the divestment to US$3.87 billion.

Alongside the sale, Olam Group plans to focus on unlocking value from its other businesses, particularly its ingredients business, Olam Food Ingredients (Ofi). The company is considering listing Ofi on the premium segment of the London Stock Exchange, along with a secondary listing in Singapore. The move comes as Olam seeks strategic options to drive future growth and explore the possibility of an Ofi IPO.

Olam Agri, which deals in a wide range of agricultural products, from grains and seeds to edible oils and pasta, is a key part of Olam Group. Created during a reorganization in 2020, the unit plays a significant role in supplying essential commodities, especially in the growing Persian Gulf market. Saudi Arabia’s focus on food security has made this divestment strategically important for both Olam and Salic.

SOURCE: BUSINESS DAY