Olam to invest $4.75b in key businesses until 2024

It will sell some of its assets to make its six-year strategic plan happen.

Reuters reported that Olam International revealed that it eyes to invest $4.75b (US$3.5b) until 2024 in 12 prioritised businesses including edible nuts, cocoa, cotton, coffee, grains and animal feed, amongst others. To do this, it will sell its sugar, rubber, wood products and fertiliser businesses and other assets to release $2.17b ($1.6b) worth of cash for its six-year strategic plan which includes its target US$3.5b investment.

Also read: Olam International Q3 profits fell 14.2% to $20.7m

With its stakes majority owned by Temasek and Japanese trading house Mitsubishi as its second-largest stake owner, the commodity trader saw its shares drop to its two-and-a-half year low in 2018 before recovering by about 15%.

Olam announced that it is exploring various options to maximise value for shareholders through engaging with financial advisors. The said transaction is expected to be finished by Q4 2019.

Earlier, Olam revealed that it will kill its sugar trade desk as raw and white sugar futures on the Intercontinental Exchange (ICE) finished at a ten-year low in 2018 on the back of a global supply glut which led to a second consecutive annual decline.

Here’s more from Reuters.