(Bloomberg) -- Olam Group Ltd.’s share price jumped after one of the world’s biggest cocoa and coffee merchant said it sold a stake in its agribusiness unit to a state-owned Saudi Arabian investment firm.
Most Read from Bloomberg
-
Trump Targets $128 Billion California High-Speed Rail Project
-
Trump Asserts Power Over NYC, Proclaims ‘Long Live the King’
-
Sorry, Kids: Disney’s New York Headquarters Is for Grown-Ups
The stock rose by as much as almost 9% to S$1.23 apiece in Singapore on Monday, before paring gains. Saudi Agricultural & Livestock Investment Co., controlled by the country’s sovereign wealth fund, will buy a 44.6% holding for $1.78 billion in Olam Agri Holdings, the Singaporean trader said in a stock exchange filing earlier today.
The acquisition will give the Saudis fund 80.01% of Olam Agri, and then three years to exercise a call option on the remaining 19.99%. The deal implied an equity valuation for Olam Agri of $4 billion, the Singaporean company said. That’s 23% higher than the current market capitalization of the group company, it said.
Salic bought just over a third of of Olam Agri for $1.24 billion in 2022. The firm is a unit of the Public Investment Fund and aims to achieve food security for the kingdom, investing domestically and overseas.
Olam Agri, which sells grains and seeds and makes everything from edible oils to pasta, is one of Olam’s main units. It was created during a reorganization in early 2020. The Persian Gulf region is a growing market for the commodities that Olam supplies and Saudi Arabia has placed a strong emphasis on food security.
(Update with Olam share price move)
Most Read from Bloomberg Businessweek
-
India’s Most Reliable Retirement Plan: Selling Grandma’s Jewelry
-
Crypto, Inflation, Bonds: Your Investment Guide to a Risky Year
-
The Undocumented Workers Who Helped Build Elon Musk’s Texas Gigafactory
©2025 Bloomberg L.P.