Mitsubishi Corp to buy at least 10% in Olam from Temasek-sources

Mitsubishi Corp will buy at least a 10 per cent stake in Olam from Singapore state investor Temasek.
Mitsubishi Corp will buy at least a 10 per cent stake in Olam from Singapore state investor Temasek.PHOTO: OLAM INTERNATIONAL

SINGAPORE (REUTERS) - Japanese trading house Mitsubishi Corp will buy at least a 10 percent stake in agri-trader Olam International Ltd from Singapore state investor Temasek in a deal worth at least US$500 million (S$701.88 million), people familiar with the matter said.

Reuters earlier reported that Olam was set to announce a strategic partnership with a Japanese peer after the Singapore-based company halted trading of its stock.

One of the sources said Mitsubishi had done extensive due diligence and had also looked at other strategic investments before choosing Olam. The people declined to be identified as discussions were private.

In a stock exchange filing on Thursday, Olam requested a trading halt pending an announcement. A Mitsubishi company official had no immediate comment on the Reuters story and Temasek declined to comment.