April 29, 2026

Olam subsidiary completes tranche 1 sale of stake in Olam Agri to Saudi Agriculture & Livestock Investment Company

Olam Group Limited has announced that its wholly owned subsidiary, Olam Holdings Pte. Ltd., has completed the tranche 1 sale of 44.58% stake in Olam Agri to the Saudi Agriculture & Livestock Investment Company SALIC, the food and agriculture investment arm of Public Investment Fund of Saudi Arabia, for US$1.88 billion.

This implies a 100% equity valuation for Olam Agri of US$4.00 billion plus closing adjustments.

The sale follows receipt of all necessary regulatory approvals and satisfaction of other closing conditions. Olam Agri becomes majority 80.01% owned by SALIC and a 19.99% owned associated company of Olam Group.

Olam Group retains a put option to sell its remaining 19.99% stake in Olam Agri to SALIC Tranche 2 on the third anniversary of the completion of tranche 1 at the base consideration of approximately US$799.6 million and additional option consideration plus a 6% IRR, providing certainty of tranche 2 completion. SALIC also retains a call option to acquire the remaining 19.99% stake on or before the third anniversary at the same consideration. Olam Agri will become a 100% owned subsidiary of SALIC on completion of Tranche 2.

Yap Chee Keong, deputy chairman at Olam Group said: "The completion of the sale of tranche 1 in Olam Agri to SALIC is another major step forward in delivering on our Re-organization Plan. It realises significant value and will enable right-sizing of the capital structure of the group. We will continue to focus on the responsible divestment and monetisation of the businesses in OGH ,and execute growth initiatives to enable ofi to realise its full potential value. We remain confident our Re-organization Plan will unlock significant value for shareholders."

Sunny Verghese, co-founder and chief executive officer of Olam Agri, said: "The completion of SALIC's acquisition of Olam Agri is a transformative step forward to accelerate Olam Agri's growth and strengthen our position as a leading global agri-business and integrated food security leader. Olam Agri is focused on providing living essentials and daily necessities to consumers for meeting their growing demand for food, feed, fuel, fiber and adjacent agricultural products. With SALIC as a strategically aligned, committed long-term partner and food security leader, we can build on our historical track record of strong performance to further accelerate and scale our ambitions for profitable growth and value creation."

- Aquafeed.com