The net proceeds from the transaction would be used to repay debt at the group level, thereby right-sizing its capital structure and reducing leverage, the company said in a statement.
Olam Group’s wholly-owned subsidiary Olam Holdings has formed a strategic partnership with Saudi Agriculture and Livestock Investment Company (SALIC) with the sale of an estimated 35.4% substantial minority stake in Olam Agri Holdings for US$1.24 billion ($1.7 billion).
SALIC is a wholly-owned subsidiary of the Public Investment Fund of the Kingdom of Saudi Arabia. The transaction values Olam Agri at an equity valuation of US$3.5 billion.
