Singapore-based food conglomerate Olam Group said on Monday it would invest $500 million in its food ingredients business and divest all remaining businesses and assets over time.
The commodity trader also said it plans to allocate $2 billion to repay all debts of its remaining businesses and make them self-sustaining, before pursuing their sale.
Olam will use the estimated $2.58 billion it receives from the sale of its stake in Olam Agri to Saudi Arabia’s agricultural and livestock investment firm SALIC, along with the proceeds from future divestments, for the restructuring.
The equity investment in Olam Food Ingredients will allow the company to explore options including a potential concurrent listing in Europe and in Singapore, it said.
Olam also plans to restart share buybacks and progressively distribute proceeds from the sale of its other assets to shareholders via special dividends.
In 2022, the company delayed a planned London listing for the food ingredients unit, citing market volatility amid the war in Ukraine.
Reuters
