Following its strategic restructuring, Olam Group sets sights on debt-free operations, equity investment in ofi, and asset divestment to maximise shareholder returns
SINGAPORE 鈥 Olam Group Limited (鈥淥GL鈥) has announced the next steps in its Updated Re-organisation Plan, aimed at unlocking shareholder value through capital restructuring, equity investments, and the divestment of remaining assets. The announcement follows the proposed sale of the Group鈥檚 remaining 64.57% stake in Olam Agri to Saudi Agricultural & Livestock Investment Company (SALIC), disclosed on 24 February 2025.
Olam Group鈥檚 restructuring journey began in January 2020, when it reorganised its business into three operating entities: ofi (Olam Food Ingredients), Olam Agri, and the Remaining Olam Group. The separation was completed in January 2022. With the planned full divestment of Olam Agri, the Group鈥檚 focus will shift to optimising ofi鈥檚 value and responsibly divesting the Remaining Group鈥檚 assets.
Key aspects of the updated plan include a US$2 billion allocation to de-leverage the Remaining Olam Group, rendering it debt-free and self-sustaining. Additionally, Olam will inject US$500 million into ofi to support strategic initiatives such as a potential concurrent listing in Europe and Singapore. The Group also intends to gradually monetise and divest all Remaining Group businesses, with net proceeds to be returned to shareholders via special dividends.
The plan is expected to be funded primarily through the anticipated US$2.58 billion in gross proceeds from the Olam Agri sale and further proceeds from the divestment of other assets. Share buybacks under the current mandate will also resume, subject to shareholder approval at the upcoming AGM.
While the timing and details of each initiative remain subject to market conditions and regulatory approvals, the Updated Re-organisation Plan demonstrates Olam Group鈥檚 continued commitment to financial discipline, strategic growth, and value creation for its shareholders.
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