SINGAPORE: Global food and agri-business Olam International has entered into an agreement to sell its remaining 50.0% equity stake in Indonesian sugar joint-venture Far East Agri to its joint venture partner Mitr Phol Sugar Corporation for a total consideration between US$82.5 million and US$85.0 million.

The consideration was arrived at on a willing buyer-willing seller basis. Olam’s sale of its shareholding in the sugar joint venture is in line with its six-year Strategic Plan announced in 2019, focusing on businesses with sustainable growth potential and divesting and/or restructuring de-prioritised assets and businesses to release capital and redeploy to the prioritised businesses.

The Transaction is expected to be completed by end-March 2020, subject to customary closing conditions. On completion, Far East Agri will cease to be an associated company of Olam. Olam will book a post-tax capital gain of approximately US$37.5 million – US$40.0 million on completion of this Transaction.

Olam International is a leading food and agri-business supplying food, ingredients, feed and fibre to 19,800 customers worldwide. Our value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 4.8million farmers.