SALIC inks SAR 6.7 billion agreement to raise stake in Olam Agri to 80.01%

The agreement includes an option for SALIC to acquire the remaining 19.99% stake within three years from the completion date of the latest stake buyout, giving it the opportunity for full acquisition. The PIF unit will also benefit from Olam Group’s experience during the transition.

SALIC seeks to invest in the food and agriculture sectors to strengthen food security and drive growth and sustainability. This will be achieved through strategic partnerships across all phases of the value chain, ensuring seamless integration between global and local markets.

The company CEO Sulaiman Al Rumaih stated that the acquisition, upon completion, will enable Olam Group to expand into new markets by leveraging SALIC’s local and international expertise. It will also strengthen SALIC’s presence in the global grain sector, ultimately benefiting consumers through improved production efficiency and food distribution.

The agreement guarantees benefits to SALIC from Olam Group during the transition period until the full acquisition is completed, he added.

According to data available with Argaam, Olam Group received a non-binding indicative offer from SALIC last November for its remaining stake in Olam Agri Holdings.

In December 2022, SALIC closed the acquisition of a 35.43% stake in Olam Agri for SAR 4.65 billion.

Olam Agri Holdings, headquartered in Singapore, is a global grain, rice, animal feed and edible oil trading company with over 9,100 employees in over 30 countries.