Olam sells stake in Indonesian sugar JV for up to $118m

It is expected to be completed by March.

Olam International has sold its remaining 50% equity stake in Indonesian sugar joint venture (JV) Far East Agri for a consideration between $114.71m (US$82.5m) and $118.19m (US$85m), according to a press release.

The stake will be bought by Mitr Phol Sugar Corporation, Olam’s JV partner for Far East Agri. The consideration was arrived at on a willing buyer-willing seller basis.

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The transaction is expected to be completed by the end of March. From here, Far East Agri will cease to be an associated company of Olam. Olam will book a post-tax capital gain of approximately $52.16m (US$37.5m) to $55.64m (US$40m) upon completion.

The group’s earnings per share is also projected to rise from 15.98 cents to 17.61 cents upon the completion of the disposal.