Saudi Agriculture & Livestock Investment Company (SALIC), the food and agriculture investment arm of Public Investment Fund of Saudi Arabia, has agreed to take over the Singapore-based Olam Agri for US$1.78bn (鈧�1.69bn).
SALIC and the listed Olam Group agreed on a two-tranche transaction to buy the 64.57% stake in Olam Agri, which the Saudi investor currently does not own. Olam said the agreed transaction valued Olam Agri at US$4bn.
SALIC has owned 35.43% of Olam Agri since 2022.
Group CEO of SALIC, Sulaiman AlRumaih, said: 鈥淭he full acquisition agreement of Olam Agri aligns with SALIC鈥檚 strategic objectives of diversifying sources of essential commodities, strengthening supply chain integration, and enhancing logistical efficiency across its local and international investments.鈥�
AlRumaih said Olam Agri aligned with SALIC鈥檚 focus on long-term strategic investments to support global and domestic food security. 鈥淥lam Agri is a first mover in some of the highest-growth markets in Africa and Asia.鈥�
Olam Group鈥檚 co-founder and group CEO, Sunny Verghese, said: 鈥淲ith its strategic mandate as a global agrifoods investor and related complementary strengths, SALIC and Olam Agri share the same vision and focus on sustainable sourcing and commitment to meet the rising demand for food, feed and fibre. Importantly, this transaction is transformative for Olam Agri.鈥�
Varghese said the sale of Olam Agri to SALIC marked another key milestone in Olam鈥檚 鈥渞eorganisation journey鈥� announced in January 2020.
鈥淲ith this transaction, we can now focus our attention on seeking strategic options to unlock value for the Remaining Olam Group businesses and ofi (Olam Food Ingredients), including the pursuit of an ofi IPO.鈥�
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