Olam Climbs After $1.24 Billion Sale of Unit Stake to Saudis

  • Deal gives Olam Agri implied equity valuation of $3.5 billion
  • Singapore-based trader boosts access to Middle East market
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Olam Group Ltd. shares advanced after the Asian food and agri-business company said it agreed to sell around a third of one of its operating units to Saudi Agricultural and Livestock Investment Co. for $1.24 billion.

Olam will sell 35.4% of Olam Agri Holdings to SALIC, it said in a filing to the Singapore Exchange. The deal, which the company said completed one of the key milestones of its re-organization, will give Olam Agri an implied equity valuation of $3.5 billion subject to closing adjustments.