Temasek tables $2.1b bid for full ownership of Olam

According to a regulatory filing, the consortium will pay S$2.23 a share, a 12% premium over the last traded price, valuing the company at $4.3 billion.

The proposal comes after Olam - one of the world's leading traders in rice, coffee and cocoa - came under attack from short-seller research firm Muddy Waters in late 2012 for its accounting practices.

The consortium - which is being led by Temasek unit Breedens Investments - also includes Aranda Investments and 10 members of Olam's executive committee, including the CEO. As part of the deal the consortium is also offering to buy outstanding convertible bonds and warrants.

Shares in Olam rose to S$2.22 after the announcement.

Olam listed in Singapore in 2005 and claims to be among the country's 40 largest publically-traded companies by market capitalization. It supplies 20 agricultural commodities and has operations in 65 countries. Olam recorded a 13% drop in net profit in the quarter ended December 31.

According to AVCJ research, Olam raised $20 million from AIF capital in 2002 and another $15 million from International Finance Corporation (IFC) in 2003. That same year it raised its first $10 million from Temasek in exchange for a 7.79% stake.

Temasek then returned to invest $400 million in 2009 over two rounds and put in another $200 million in 2011. RRJ Capital invested $94.5 million in 2012 alongside Temasek.

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• Topics
• Southeast Asia
• Buyout
• Buyouts
• Singapore
• Temasek Holdings
• Agriculture
• Commodities
• buyout