PIF-Backed SALIC Gets a Big Minority Stake in Olam Agri

Posted on 03/31/2022

The Saudi Agricultural and Livestock Investment Company (SALIC) is a wholly owned subsidiary of Public Investment Fund of the Kingdom of Saudi Arabia. SALIC plans to invest US$ 1.24 billion for an estimated 35.4% stake in Olam Agri Holdings Pte. Ltd. Olam Group Limited will remain majority shareholder of Olam Agri with an estimated 64.6% interest. Olam Agri is one of the three operating groups formed in early 2020 following the announcement of the re-organization of Olam Group. The implied 100% equity valuation of Olam Agri is US$ 3.5 billion. The net proceeds from the transaction would be used to repay debt at the Olam Group level.

Olam Agri and SALIC have agreed to enter into a Strategic Supply & Cooperation Agreement which would enable SALIC to help the Kingdom of Saudi Arabia to further progress their food security agenda, whilst enabling Olam Agri to gain significant access to the large and high-growth Middle East market.

Rothschild & Co Singapore Limited and Credit Suisse (Singapore) Limited are the financial advisers to the Company on this transaction.

Goldman Sachs Saudi Arabia is the exclusive financial adviser to SALIC on this transaction.

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