[SINGAPORE] Agribusiness giant Olam will dispose of its entire stake in port and logistics operator Arise P&L for a US$175 million consideration, as part of plans to monetise one of its units.
The group said it entered into a conditional sale and purchase agreement with Equitane DMCC to dispose of its whole stake in Arise P&L, amounting to 161.1 million ordinary shares or around 32.4 per cent of the issued and paid-up shares in the company’s capital.
After the sale, Olam will cease to hold any shares of Arise P&L.
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’Ivoire.
The buyer is a Dubai-based long-term investment platform that creates sustainable solutions in Africa.
The sale is subject to terms and conditions, and is expected to complete by Dec 31, 2025, Olam said on Thursday (Apr 17).
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Olam said that the disposal aligns with its updated reorganisation plan – where it intends to inject US$500 million into its Olam Food Ingredients unit while progressively liquidating its remaining assets.
It intends to monetise one of three operating units carved out from its prior restructuring exercise completed in 2022, the remaining Olam group. It will divest all assets and businesses under the remaining Olam group over time and distribute the net proceeds to shareholders via special dividends.
The company in February also announced the divestment plan for another operating unit, Olam Agri, one of its two profit-making units.
Completion of the Arise P&L stake sale is conditional upon Olam and Equitane DMCC obtaining consent from the Conceding Authority of Cote d’Ivoire, the Gabonese Republic and Societe Librevilloise Maritime, and all shareholders of Arise P&L, among other parties.
Shares of Olam closed Wednesday unchanged at S$0.89.
