PIF's SALIC to boost stake in Olam Agri to over 80% in $1.78bn deal

Arab News

24-02-2025

RIYADH: Saudi Agricultural and Livestock Investment Co. has struck a $1.78 billion deal for a controlling stake in Singapore-based Olam Agri Holdings.
The agreement will raise SALIC's stake from 35.43 percent to 80.01 percent, with an option to acquire the remaining 19.99 percent within three years, the company said in a statement, adding that the transaction is subject to regulatory approvals.
The move aligns with the Saudi firm's strategy to strengthen global food supply chains, reflecting its 2009 mandate as a Public Investment Fund-owned entity investing in agriculture and livestock to bolster the Kingdom's food security.
'This success has reinforced our confidence in our investment vision and our pursuit of sustainable growth,' said Sulaiman Al-Rumaih, group CEO of SALIC.
'It aligns perfectly with SALIC's strategy of backing innovative, high-potential companies that address future food security needs through integrated supply chains both at home and abroad,' he added.
The company has a track record of investing across the global agri-food supply chain to improve access to essential foods, with current investments spanning five continents, seven countries, and 16 food commodities.
Al-Rumaih added that the investment would enable Olam Agri to leverage SALIC's extensive global network to expand its market presence.
'This investment not only reinforces our leadership in the global grains sector but will ultimately benefit consumers through enhanced food production and more efficient distribution,' he said.
The statement added that the increased stake in Olam Agri Holdings is a key element of SALIC's international strategy, aimed at ensuring the availability of essential goods and enhancing sustainability through investment diversification and supply chain integration.
Sunny Verghese, CEO of Olam Agri, said the company's partnership with SALIC, which began in 2022, has unlocked new avenues for growth.
'With its strategic mandate as a global agrifoods investor and related complementary strengths, SALIC and Olam Agri share the same vision and focus on sustainable sourcing and commitment to meet the rising demand for food, feed and fiber. Importantly, this transaction is transformative for Olam Agri,' said Verghese.
He added that the deal will unlock significant value for Olam Group shareholders.
In a separate statement, Olam Agri said the divestment of its entire stake to SALIC will raise total proceeds of $3.9 billion for Olam Group, adding $2.7 billion to its equity reserves.
Olam Agri has a strong presence in grains and oilseeds, animal feed and proteins, edible oils, rice, and cotton, according to its website.