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Olaim Group Financial Results
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sfw2124
Senior |
07-Apr-2026 18:48
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Olam-Mindsprint Deal: Clearing Up the Confusion (Simple Breakdown) There' s been some head-scratching about Olam' s (VC2) Mindsprint sale to Wipro. Here' s the plain-English version: 1. The Sale = Straight Win Olam sells Mindsprint for US$375m cash (~S$500m). They originally paid ~US$65m for it years back, so that' s a ~US$310m profit booked. Per-share impact: +10 cents NAV. Cash goes to special dividends down the line. Home run. Deal closes June 2026. 2. The Services Contract = Business as Usual (Maybe Better) Olam signs 8-year deal paying Wipro US$100m/year for IT/digital services. This is 55-60% of Olam' s normal IT/shared services budget (~US$175m total spend). Not new spending&mdash just redirecting existing IT dollars from internal team + vendors &rarr Wipro' s AI expertise. Hope for efficiency savings later (TBC). Who pays post-reorg? Probably Olam Group overall (split across remaining businesses like ofi). Agri' s already separating. News article just reports facts accurately was spot-on about value unlock but guessed on IT savings (fair call, not confirmed). Bottom line: Smart move. Cash today + same operations tomorrow + focus on food biz. Win-win. DYODD
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Joelton
Supreme |
07-Apr-2026 11:16
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Olam selling IT and digital services unit Mindsprint to Wipro for US$375 million The agri-food giant will also spend US$100 million annually with the global tech company for eight years [SINGAPORE] Agri-food giant Olam Group : VC2 -0.58% is selling its information technology and digital services unit to Wipro for US$375 million as part of a broader corporate reorganisation. The sale of the Mindsprint unit is part of Olam&rsquo s strategy to sell off assets over time, with the company planning to distribute the net proceeds to shareholders via special dividends, Olam said on Monday (Apr 6). The Singapore-based company also agreed to an eight-year contract to spend US$100 million annually with the global technology services and consulting company. That represents about 55 to 60 per cent of Olam&rsquo s total annual spending on technology and shared services. Under the agreement, Wipro&rsquo s consultants will use artificial intelligence tools to upgrade Olam&rsquo s technology across its entire supply chain, from farming and manufacturing to customer engagement. Leadership continuity Mindsprint will become a wholly owned subsidiary of Wipro upon the completion of the transaction. The sale is expected to close by the end of June. The unit employs more than 3,200 people globally and serves clients across various sectors including food and agribusiness, manufacturing, retail and healthcare. Key management personnel, including Mindsprint chief executive officer Suresh Sundararajan, will continue to lead the business to ensure stability and continuity. Olam Group co-founder and CEO Sunny Verghese said the transaction marks another milestone in the company&rsquo s reorganisation plan, allowing Olam to sharpen its focus on core operating businesses and unlock long-term value. The partnership aims to advance Olam&rsquo s transformation across its &ldquo farm to fork&rdquo value chain, enhancing operational effectiveness in areas such as farming, manufacturing and supply chain operations. The Mindsprint deal follows the group&rsquo s sale of its stake in Olam Agri to the Saudis. The group also expects the completion and receipt of proceeds from the sale of its remaining stake in port operator Arise P& L &ldquo sometime towards the end of April&rdquo . The agri-food company sold or wound down three businesses under the remaining group in the 2025 financial year, leaving it with seven. |
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Alignment
Elite |
06-Apr-2026 23:33
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Some confusion has been expressed about this deal, which is understandable as, has been the case in the past, investor communcations has been suboptimal. Let me try to explain. There are two elements to this deal. First is the sale of Mindsprint for US$375m enterprise value. This deal is clearly positive for Olam, as evidenced by this deal representing a US$310.5m gain for it, hence an increase in NAV per share of 10 cents for Olam when the deal completes. In fact Olam has hit a home run - it has sold a US$65m book value asset at almost 6x the value. The second element of the deal is the 8 year services contract to Wipro for US$100m a year. Olam stated that this US$100m represents 55-60% of Olam' s annual spend on technology and shared services i.e. Olam spends about US$175m a year on technology and shared services. The scale of these numbers mean one should not look at this as sale and leaseback of Mindsprint. What I believe Olam is doing (which Olam should be explaining more explicitly) is that it spends about US$175m a year on technology and shared services paid to various parties, but with this deal US$100m of the US$175m will be going to Wipro, so the total US$175m has not changed. In fact I would hope at some point to hear that actually Olam will be making a saving on the US$100m compared to what it was previously paying to other 3rd parties i.e. in the future the US$175m per year will fall due ti Wipro efficiency. Let' s see. If so this second leg of the deal announced today would also be a positive in and of itself. One question I do have is who the counterparty for the Wipro contract is in the context of Olam Group being broken up. Olam Agri and OFI are going their separate ways so will the US$100m be shared between these different parties? |
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shk363
Elite |
06-Apr-2026 16:12
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sounds like a negative news
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alexvar
Senior |
06-Apr-2026 15:58
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This indian wipro deal again seems like an asset sale & lease-back transaction. Sell OLAIMs asset to WIPRO for US$375 million, and then OLAIM commits to spend US$800 million with WIPRO. is OLAIM losing US$425m with this transaction? OLAIM does not even disclose what is ther paper gain or loss from this transaction ! dydd |
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n3wbie
Elite |
06-Apr-2026 09:47
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Anyone following this stock? Positive news with divestment of US$375m but market doesnt seem to react https://www.theedgesingapore.com/news/ma/olam-sell-it-services-unit-wipro-us375-mil |
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Alignment
Elite |
28-Mar-2026 14:32
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Ah ok thanks. It' s not impossible, but a month and a half would in the context of other jurisdictions be seen as relatively quick. Let' s see if he is correct.
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JurongW
Elite |
28-Mar-2026 14:05
Yells: "Earnings give weight, Chart give wings" |
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tonytony
Veteran |
28-Mar-2026 13:28
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According to a February 2026 report, Sulaiman Al-Rumaih, CEO of the Saudi Agricultural and Livestock Investment Company (SALIC), stated that the deal for the remaining stake in Olam Agri is expected to close by the first quarter of 2026. | ||||
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Alignment
Elite |
28-Mar-2026 12:34
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Did someone at Olam suggest a 1Q target? The ECOWAS filing was made in mid Feb. Given this is one of the first cases I believe there is limited precedent, but if you consider the EU equivalent process somewhere between 2-3 months is the norm for such a deal which takes you to mid-April to mid-May as a guesstimate. |
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tonytony
Veteran |
28-Mar-2026 08:45
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looks like will miss the 1stQ target for the last and only jurisdiction approval . May have to delay to 2nd Q 2026 | ||||
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Alignment
Elite |
27-Mar-2026 16:21
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This is to refi existing debt so net debt stays the same. Meanwhile raising debt in euro should reduce interest costs.
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eddyeddy
Master |
19-Mar-2026 14:08
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Thought CEO said wanted Olam to be deby free company ?
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FATABA
Supreme |
19-Mar-2026 13:10
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how many more loans is Olam taking up Selling off Agri to par down loan and yet it is taking up another Dyodd
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Joelton
Supreme |
19-Mar-2026 12:39
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Olam unit bags 1.1 billion euro dual-tranche loan facility
Proceeds will be used for refinancing ofi&rsquo s existing loans and general corporate purposes
[SINGAPORE] A wholly owned subsidiary of Olam Group : VC2 +0.57% &ndash Olam Food Ingredients (ofi) &ndash has secured its inaugural dual-tranche syndicated loan facility valued at 1.1 billion euros (S$1.6 billion), a Wednesday (Mar 18) bourse filing indicated.
The group said that the facility comprises a two-year 450 million euro revolving-credit tranche, with a lenders&rsquo extension option of one year, and a three-year 650 million euro term-loan tranche.
Proceeds from the facility will be used for refinancing ofi&rsquo s existing loans and general corporate purposes.
A total of 11 banks participated in the facility. The lead arrangers of the facility are Banco Santander, Commonwealth Bank of Australia (Europe) and DZ Bank.
As for the mandated lead arrangers, they are Banco Bilbao Vizcaya Argentaria Credit Agricole Corporate and Investment Bank First Abu Dhabi Bank ING Bank KfW Ipex-Bank Natixis Cooperatieve Rabobank and UniCredit Bank.
HSBC has been appointed as the facility agent.
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investment
Senior |
16-Mar-2026 15:13
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Start of the play due to pending outcome of the ERCA approval? | ||||
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money4life
Senior |
04-Mar-2026 09:14
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Because of not giving dividend and the share can dropped way more, actually is good for investors to buy in. Waiting for 70+c to come 
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Joelton
Supreme |
03-Mar-2026 11:36
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Olam to guarantee US$100 million loan for Olam Agri until unit is sold The group is selling its 44.58% stake in Olam Agri to Saudi Agricultural and Livestock Investment Company [SINGAPORE] Agribusiness Olam Group : VC2 -4.37% said its food, feed and fibre operating business Olam Agri, has secured a seven-year US$100 million financing facility, which will initially be guaranteed by the Singapore-listed group. Olam said in a regulatory filing on Monday (Mar 2) that its unit will eventually be the guarantor after the group completes the proposed sale of its 44.58 per cent stake in Olam Agri to the Saudi Agricultural and Livestock Investment Company. The proceeds, according to Olam, will be used by Olam Agri to support the flow of rice from India, Thailand and Vietnam to African countries where rice is a food staple. Olam Agri, which sells grains and seeds and makes everything from edible oils to pasta, is one of Olam Group&rsquo s main units. It was created during a reorganisation in early 2020. The Gulf region is a growing market for the commodities it supplies and Saudi Arabia is putting a strong emphasis on food security. The loan is provided by Dutch entrepreneurial development bank FMO. |
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eddyeddy
Master |
01-Mar-2026 20:12
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Git it , Thanks.
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Alignment
Elite |
01-Mar-2026 18:44
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They had a results presentation starting at 1030am on Friday. Some people attend in person, and there is also a webcast.
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