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RRJ to invest in Olam International – report

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RRJ Capital has reportedly agreed to invest in Olam International, the commodities supplier that recently came under attack from short-seller research firm Muddy Waters. Olam, which has seen its stock slide about 18% since the allegations were first made in late November, had already announced plans to offer $750 million in bonds and up to $500 million in warrants.

According to Bloomberg, RRJ has acquired rights to $90 million of bonds and $60 million in warrants. The rights to the bonds were bought at around $0.07 apiece. The warrants issued with Olam's five-year, 6.75% coupon bonds can be exercised in three years at S$1.29 per share. The company is currently trading at around S$1.60 per share.

RRJ was set up by Richard Ong, formerly of Hopu Investment Management. Ong was subsequently joined by his brother Charles, seconded from Temasek Holdings. The private equity firm, which raised $2.3 billion for its debut fund in 2011, is currently in the market with its second vehicle, targeting $5 billion.

RRJ has an appetite for energy and related assets, having invested in Kulun Energy, Cheniere Energy and Frac Tech Services. The GP doesn't have an Asia-specific mandate, although it frequently co-invests with the likes of Temasek and targets companies that are relevant to the region's needs.

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