Latest news with #SulaimanAl-Rumaih
Asharq Al-Awsat
25-02-2025
- Business
- Asharq Al-Awsat
Saudi Arabia's SALIC to Buy Control of Olam Agri for $1.8 Billion
SALIC, a subsidiary of the Saudi Public Investment Fund (PIF), announced on Monday that it signed an agreement to increase its stake in Singapore's Olam Agri Holdings (Olam Agri) from 35.43% to 80.01%, for a total value of $1.78 billion. The transaction is subject to regulatory approval, the company said in a statement. The agreement includes an option for SALIC to acquire the remaining 19.99% stake within three years from the completion date of the latest stake buyout, giving it the opportunity for full acquisition. The full acquisition agreement of Olam Agri aligns with SALIC's strategic objectives of diversifying sources of essential commodities, strengthening supply chain integration, and enhancing logistical efficiency across its local and international investments, reported the Saudi Press Agency (SPA). Furthermore, this acquisition underscores SALIC's ambition to secure a key position in the global grains sector. According to Bloomberg, the deal values Olam Agri at $4 billion, 23% higher than the current market capitalization of the group, the Singaporean company said. On completion of the 44.6% stake sale, likely in the fourth quarter of this year, Olam Group will realize an estimated gain on disposal of $1.84 billion, it said. In early 2022, Olam Group agreed to sell around a third to SALIC, in a transaction that priced it at around $3.5 billion. 'The full acquisition agreement of Olam Agri aligns with SALIC's strategic objectives of diversifying sources of essential commodities ... to secure a key position in the global grains sector,' SALIC Group CEO Sulaiman Al-Rumaih said in a statement. He added: 'Olam Agri, a global player in trading essential commodities, aligns with SALIC's strategic investment approach, which prioritizes high-potential companies addressing future food security needs through innovation and integrated supply chains both locally and globally.' 'We are confident that this partnership will contribute to achieving national and global objectives while continually enhancing production efficiency for the benefit of all stakeholders,' Al-Rumaih said. OGL's Co-Founder and Group CEO Sunny Verghese said: 'Since SALIC's investment in Olam Agri in 2022, our partnership with SALIC has unveiled new avenues of growth.' He said 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,' Verghese added. SALIC 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.
Arab News
24-02-2025
- Business
- Arab News
PIF's SALIC to boost stake in Olam Agri to over 80% in $1.78bn deal
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.
Argaam
05-02-2025
- Business
- Argaam
SALIC's investment portfolio rises to SAR 27B: CEO
Saudi Agricultural and Livestock Investment Co.'s (SALIC) investment portfolio grew from SAR 5 billion in 2019 to SAR 27 billion at present, CEO Sulaiman Al-Rumaih said, per Al Eqtisadiah Newspaper. Higher investments and operations expansion came with great support from the Saudi government, the CEO added on the sidelines of SIMEC Expo held in Riyadh. He indicated that the company invests in 14 international projects in eight different countries. It is working to supply 1.6 million tons of different food commodities to Saudi Arabia annually. SALIC's investments include grain, meat, poultry, and rice sectors, Al-Rumaih further stated. According to Argaam, SALIC was established in 2009 under a royal decree. The company is owned by the Public Investment Fund (PIF) and aims to contribute to achieving the food security strategy in the Kingdom. The company owns stakes in several companies, including NADEC, Almarai and Ukraine-based agritech company MHP, as well as other investments in Brazil, India, Australia, Singapore and Canada.
