Olam Group mulls a full exit from its agri unit in transaction with PIF-owned Salic

Singapore-based agricultural trader Olam Group is reportedly in talks to sell its 64.6% stake in Olam Agri to PIF-owned Saudi Agricultural and Livestock Investment Company (Salic), the Wall Street Journal reports, citing people it says are familiar with the matter.

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The potential transaction would make Salic the sole owner of Olam Agri. It acquired a 35.4% stake in a USD 1.24 bn transaction in 2022.

This could put ice on the Olam Group’s plan to dual-list its agri subsidiary on Tadawul, the sources added.

What’s Olam Agri? Olam Agri focuses on producing, and processing agricultural products. It also has a freight management unit, and provides commodity financial services. The company has 60 manufacturing and processing facilities, with operations in more than 30 countries, serving 8.4k corporate customers, according to its website. Olam’s top line stood at USD 23 bn in 2023, according to the WSJ.

Regional footprint: The agri producer claims to be the largest shipper of containerised agri-commodities in Algeria, with a strong presence in Tunisia, Morocco, Egypt, and the GCC. Its marketing, sales and distribution offices for the region are located in Algeria, Egypt, Morocco, and the UAE.