Olam Sells Agri Unit Stake to SALIC for $4 Billion

Olam Group is selling its remaining stake in its agribusiness unit, Olam Agri, to Saudi Agriculture and Livestock Investment Company (SALIC) for $4 billion. The deal will increase SALIC's holding from 35.4% to 80% initially, with an option to acquire the remaining 20% within three years. This transaction aligns with SALIC's strategy to bolster global food supply chains and enhance Saudi Arabia's food security. Olam Group plans to use the proceeds for debt repayment or a special dividend and may pursue an IPO for Olam Food Ingredients. The deal is expected to be completed in the fourth quarter of this year. Shares of Olam Group rose following the announcement, reflecting investor optimism about the company's strategic moves.