Olam International shares to cease trading ahead of March 16 return as Olam Group

Current Olam International shares will be converted to the same number of the reorganised Olam Group's shares. ST PHOTO: MARK CHEONG

SINGAPORE (THE BUSINESS TIMES) - Wednesday (March 9) marks the last day of trading in shares of Olam International before the group returns to the Singapore Exchange (SGX) a week later on March 16 to trade under its new security name, Olam Group.

With effect from 9am on March 10, shares of Olam International will be suspended.

Its transfer books and register of members will be closed at 5pm the following day to determine the entitlements of Olam's shareholders in respect of the group's scheme of arrangement for its proposed restructuring, which was sanctioned in court last week on March 3.

Current Olam International shares will be converted to the same number of the reorganised Olam Group's shares, which are due to commence trading on SGX at 9am on March 16. Shares of Olam International are expected to delist on the same day.

These procedures come as part of the agri-business giant's ongoing restructuring plans, which will see it spinning off its Olam Food Ingredients (OFI) unit and subsequently, the Olam Global Agri (OGA) unit.

Once OFI and OGA are spun off, the group intends to focus on investing in start-ups involved in digital technology and sustainability.

OFI consists of the company's cocoa, coffee, edible nuts, spices and dairy businesses. It is due for a primary listing on the premium segment of the London Stock Exchange, along with its concurrent SGX listing, by the first half of its 2022 financial year.

Shareholders of the new entity Olam Group will receive OFI shares following the unit's initial public offering (IPO) and demerger.

Olam Group will continue to hold OGA and gestate its assets and businesses, which the group plans to monetise in part or full. It is also evaluating the option of introducing strategic minority partners through the sale of a significant minority stake in OGA.

According to Olam International co-founder Sunny Verghese, the group intends to seek an IPO for OGA six months after OFI goes public. OGA comprises the grains and animal feed, edible oils, rice, cotton and commodity financial services businesses.

Olam International had previously announced that its decision to rejig its portfolio into three distinct business units - Olam Group, OFI and OGA - would simplify the group's structure and give it opportunities to unlock long-term value.

Shares of Olam International closed down two cents, or 1.1 per cent, at $1.76 on Wednesday.

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