The company intends to divest its stake in Arise P& L for US$175 million

 

[SINGAPORE] Olam Group said it has &ldquo made progress&rdquo in securing approvals from different lenders to Arise P& L for the proposed divestment of its 32.4 per cent stake in the port and logistics operator.

 

In April 2025, the agribusiness giant entered a conditional sale and purchase agreement with Dubai-based investment platform Equitane DMCC. 

 

Under the deal, Olam will dispose of its stake in Arise P& L for a US$175 million consideration. This amounts to 161.1 million ordinary shares, or around 32.4 per cent of Arise P& L&rsquo s issued and paid-up share capital.

 

After the sale, which was expected to be completed by end-2025, Olam will not hold any shares of Arise P& L.

 

The company announced on Wednesday (Jan 14), before the market opened, that the lender&rsquo s approval is an &ldquo enabling step&rdquo to approach the shareholders of Arise P& L and the regulatory authorities for their approvals.

 

Olam said in a bourse filing that it intends to complete the proposed disposal &ldquo as soon as practicable upon the receipt of all the approvals&rdquo .

 

Arise P& L manages ports and logistics infrastructure projects in West Africa, including a mineral port and a general cargo port in Gabon and a bulk port in San Pedro, Cote d&rsquo Ivoire.

 

The divestment is part of Olam&rsquo s business reorganisation announced in 2025. This includes plans to divest and monetise assets and businesses of the remaining Olam group &ndash one of its three business units.

 

Meanwhile, the group is in the process of divesting its Olam Agri unit to the Saudis, while growing its Olam Food Ingredients, or ofi, unit.

 

The announcement comes almost a year after Olam Holdings and Olam Agri entered into the US$1.8 billion deal with the Saudi Agricultural and Livestock Investment Company (Salic) in February 2025. 

 

The company announced on Monday (Jan 5), before the market opened that the completion of the proposed sale depends on meeting various conditions, such as obtaining necessary regulatory approvals. 

 

Olam intends to complete the proposed sale &ldquo as soon as practicable upon the satisfaction of all the conditions&rdquo , said Olam&rsquo s co-founder and chief executive officer, Sunny Verghese in a bourse filing. 

 

In February 2025, the food and agribusiness giant announced that it had entered into a deal to dispose of all its remaining shareholdings in Olam Agri in two tranches. 

 

The first tranche involves a 44.58 per cent stake, or 1.5 billion ordinary shares, which Salic will acquire for about US$1.8 billion. This implies an equity valuation of US$4 billion of the whole of Olam Agri. 

 

The first transaction was expected to be completed in the fourth quarter of 2025 and would result in Salic controlling 80.01 per cent in Olam Agri, up from around 35.43 per cent currently. 

 

Within three years of the completion of this first tranche, the group will sell the remaining 19.99 per cent stake in Olam Agri through a call/put option. 

 

In Monday&rsquo s statement, Verghese added that investors are urged to &ldquo exercise caution&rdquo when trading as the completion of the sale is not yet guaranteed and remains subject to the conditions outlined in the sale and purchase agreement.