Saudi Arabia's SALIC to buy 35.4% of Olam Agri, Singapore firm with assets in Russia
MOSCOW. March 25 (Interfax) - Singapore's Olam Group, which owns the company Rusmolko and Azov Grain Terminal in Russia, is selling a stake of about 35.4% in Olam Agri to the Saudi Agricultural and Livestock Investment Company (SALIC), a wholly owned subsidiary of Saudi Arabia's public investment fund, for $1.24 billion, Olam said in a press release.
The deal is significant as it will bring SALIC into Russia's agriculture market, the Russian Grain Exporters Union said.
Olam Group will remain Olam Agri's majority shareholder with 64.6%.
"Olam's partnership with SALIC, a strategic, global investor, will position us for even stronger growth as we realise synergies across our complementary strengths," Olam Group cofounder and CEO Sunny Verghese was quoted as saying in the press release.
SALIC's investment into Olam Agri marks another key milestone in Olam's reorganisation, and "together with the ongoing IPO plans of ofi, this secondary placement for Olam Agri would lead to an immediate unlocking of value for our shareholders, set a benchmark valuation for the future IPO and demerger of Olam Agri, and right-size our balance sheet and reduce gearing at the Group level," Verghese said.