In a strategic move to reshape its business portfolio, Olam Group has announced the sale of a 44.58% stake in its agribusiness unit, Olam Agri, to the Saudi Agricultural and Livestock Investment Company (Salic)—a subsidiary of Saudi Arabia’s sovereign wealth fund.Â
The deal, valued at US$1.78 billion (S$2.35 billion), was confirmed in an exchange filing on February 24, 2025.
With this acquisition, Salic will gain an 80% controlling interest in Olam Agri, significantly increasing its influence over its operations. The agreement, which values Olam Agri at US$4 billion, is part of Olam’s broader strategy to restructure and optimize its business holdings.
Financial Impact and Future Outlook
Olam Group expects to gain US$1.84 billion from the sale, a substantial boost allowing the company to focus on unlocking value in its remaining businesses. Furthermore, as part of the agreement, Olam will transfer full control of Olam Agri to Salic within three years, selling its remaining 19.99% stake in the company.
This transaction follows Olam’s 35.43% stake sale in Olam Agri to Salic in December 2022, bringing the total divestment proceeds to US$3.87 billion. The funds from this disposal will support Olam’s next strategic moves, including its plans to list its ingredients business, Ofi (Olam Food Ingredients), on the London Stock Exchange’s premium section, alongside a secondary offering in Singapore.
Strategic Expansion and Saudi Arabia’s Food Security Goals
Olam Agri, one of Olam Group’s core divisions, specializes in producing and distributing grains, seeds, edible oils, and pasta. The company was formed following Olam’s restructuring in early 2020 and has since established itself as a key player in global agricultural trade.
With its growing emphasis on food security, Saudi Arabia sees Olam Agri as a vital asset in its mission to secure a stable supply of agricultural commodities. The Persian Gulf region remains a key market for Olam’s products, making this acquisition highly strategic for Salic and the Saudi government.
CEO’s Vision for Olam’s Next Phase
Sunny Verghese, Olam’s Group CEO, highlighted that the transaction allows the company to sharpen its focus on exploring strategic opportunities for its remaining businesses. “With this transaction, we can now concentrate on looking for strategic options to unlock value for the remaining Olam Group businesses and Ofi, including the pursuit of an Ofi IPO,” he stated.
This deal marks a significant shift for Olam Group, which is streamlining its operations and positioning itself for future expansion in high-growth sectors.
