Olam Group has entered into a definitive agreement with Equitane DMCC to sell its remaining 32.4% stake in Arise P&L for a price consideration of US$175 million, which represents approximately a 7% premium over the carrying value of the investment as at end-2024.
Olam’s April 17 announcement follows its updated re-organisation plan, unveiled on April 14. The group aims to right-size its remaining capital structure, unlock the full potential value of Olam Food Ingredients (ofi) and divest and monetise its remaining assets and businesses over time.
Equitane, previously known as the Africa Transformation and Industrialization Fund, is a long-term investment platform headquartered in Dubai, UAE. It is dedicated to creating sustainable and innovative solutions across key sectors in Africa.
Equitane was established in 2021 by the founding team of the Arise group, a Pan-African developer and operator of industrial parks and logistics providers via Arise Integrated Industrial Platforms and Arise Infrastructure Services respectively.
Olam sold its remaining stakes in the two Arise subsidiaries to Equitane in 2022.
The sale is not expected to have a material impact on Olam’s net tangible assets per share or earnings per share for the current financial year. Subject to customary closing conditions, the sale is expected to close within FY2025.
As at 10am, shares in Olam are trading 1 cent higher, or 1.12% up, at 90.5 cents.
