Olam to divest remaining stakes in ARISE IIP, ARISE IS for $254.55m

This leaves the company with only a 32.4% stake in the ARISE group.

Olam International Limited (Olam) has entered into definitive agreements with Africa Transformation and Industrialization Fund (AITF), to sell its remaining equity stakes in ARISE Integrated Industrial Platforms (“ARISE IIP) and ARISE Infrastructure Services (“ARISE IS”) for $254.55m (US$189m).

“The consideration is arrived at on a willing buyer willing seller basis taking into account the performance of the business in 2020 and 2021 as well as relevant precedent transactions for these assets,” the company said in a bourse filing.

Olam said the divestment is in line with the company’s 2019-2024 Strategic Plan and its Reorganisation Plan.

“This represents a significant step in achieving the objective of extracting full value from its investments in infrastructure and logistics projects in Africa through the complete sale of its equity stakes in the three ARISE verticals to strategic or financial investors,” the company added.

While Olam has exited ARISE IIP and ARISE IS, the company still has a remaining investment in the ARISE group, with a 32.4% stake in ARISE Ports & Logistics (ARISE P&L).

The divestment is not expected to have a material impact on Olmas net tangible assets per share or earnings per share for the current financial year. It is expected to be completed in the second quarter of 2022.

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