SALIC plans full takeover of Olam Agri: Report

SALIC intends to begin talks next year to buy the remaining 20% stake in Olam Agri, following the completion of its majority stake acquisition

The Saudi Agricultural & Livestock Investment Co. (SALIC) is considering a full acquisition of Olam Agri Holdings Co., a subsidiary of Olam Group, Bloomberg reported, citing sources.

SALIC plans to begin talks next year to acquire the remaining 20% stake in Olam Agri, following the completion of its majority stake acquisition, according to the sources.

The sources added that the majority stake deal is expected to be finalized before the end of this year, pending regulatory approvals.

Under the agreement with Olam Group, SALIC holds an option to purchase the remaining 20% stake within three years and retains the right to exercise this option during the agreed period, Bloomberg said.

SALIC signed an agreement in February to raise its ownership in Olam Agri from 35.43% to 80.01% for a total value of $1.78 billion (SAR 6.7 billion), data available on Argaam indicated.

Wholly owned by the Public Investment Fund (PIF), SALIC had earlier completed the acquisition of a 35.43% stake in Olam Agri in December 2022, valued at SAR 4.65 billion.

Based in Singapore, Olam Agri is one of the world’s leading companies in the trade of grains, rice, feed, and edible oils, employing over 9,100 people across more than 30 countries.