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501-520 of 1522
Olam Agri is sold for U$2.6B gross ...( note gross ) ..paying off fees., goodwill etc ?
U$2B is for de-leverage of Olam group balance sheet > means at best 600M left for 3.8B shareholders ( if I am not wrong > )
What about working capital ? how much will be distributed then as special divvidend ?
DYODD
U$2B is for de-leverage of Olam group balance sheet > means at best 600M left for 3.8B shareholders ( if I am not wrong > )
What about working capital ? how much will be distributed then as special divvidend ?
DYODD
Joelton ( Date: 15-Apr-2025 10:54) Posted:
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Olam to inject US$500 million into ofi, liquidate remaining assets over time
The investment, funded by internal resources, is aimed to &lsquo position ofi to pursue profitable growth&rsquo
[SINGAPORE] Olam Group : VC2 +4.71% will invest US$500 million equity into Olam Food Ingredients (ofi) within the next three months, while de-leveraging the remaining Olam group for progressive liquidation, as part of its reorganisation plan amid the disposal of Olam Agri.
The US$500 million investment, funded by internal resources, is aimed to &ldquo position ofi to pursue profitable growth&rdquo so that Olam can resume the delayed ofi initial public offering (IPO) plans in both Europe and Singapore, said Olam&rsquo s chief executive officer Sunny Verghese in a press conference on Monday (Apr 14).
The agri-business giant, which announced its divestment plan of the main profit-making unit &ndash Olam Agri &ndash in February, is also open to private routes to unlock value from ofi.
Meanwhile, Olam will re-initiate share buybacks after renewing its share buyback mandate in the upcoming annual general meeting on Apr 25.
Monetising remaining Olam group
Olam will allocate about US$2 billion to de-leverage the balance sheet of the remaining Olam group, one of the three operating groups carved out in an early restructuring completed in 2022.
After making the unit debt-free and self-sustainable, Olam will &ldquo responsibly divest&rdquo all of its assets and businesses over time, and distribute the net proceeds to shareholders via special dividends.
The proceeds from the disposal of Olam Agri, estimated at US$2.6 billion gross, will finance the plan.
Olam to sell remaining stake in Olam Agri for US$2.6 billion, focuses on IPO of business unit ofi
However, Verghese noted that it is hard to predict either the timeline or target valuation of the divestment of the 10 assets and businesses under the remaining Olam group.
&ldquo But what we want to clarify is that there will be no fire sale of these assets... we have already initiated a process of finding the right long-term owners of these businesses,&rdquo he added.
As at end-2024, the remaining Olam group comprised of about US$2 billion invested capital. &ldquo We expect to get the fair value from these businesses after we have restructured the business and made that entire business debt free,&rdquo noted Verghese.
On what would happen to the listed parent company once the remaining Olam group is divested and ofi is public separately, Verghese said that Olam will update as the situation progresses given the limited predictability.
&ldquo It is a function of a lot of factors, some of which are in our control, a lot of which are not in our control... when there is any material development, we will keep you informed,&rdquo he noted.
Very unstable company uy woth cautions
Sell to Saudi but what happened to the one-off special dividend?
Now say what to close other units?
Yes, you are right. Plus, are the Company use the borrowing to declare dividend as the EPS not that high?
So they will continue to get more borrowing to run the company?
So they will continue to get more borrowing to run the company?
FATABA ( Date: 07-Mar-2025 16:21) Posted:
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Olam Group
On Feb 28, Olam Group executive director, co-founder and CEO Sunny Verghese bought 500,000 shares at an average price of S$0.99 per share. With a consideration of S$495,580, this increased his direct interest from 4.43 per cent to 4.45 per cent.
His preceding acquisition on the open market was in July 2022, with 500,000 shares acquired at S$1.54 apiece.
On Feb 28, Olam Group reported that its FY2024 core operating profit, or earnings before interest and tax, increased by 9.2 per cent year on year to S$1.9 billion.
Full-year sales volume grew 12.5 per cent to 49.6 million tonnes, driven by Olam Agri. However, significantly higher net finance costs of S$445.7 million led to a 69 per cent decline in profit after tax and minority interests to S$86.4 million.
It was reported that the higher net finance costs were due to elevated net debt levels from price-led working capital increases.
Prior to the release of the results, on Feb 24, Olam Group announced that it had entered into a conditional sale and purchase agreement with Saudi Agriculture and Livestock Investment Company (Salic) to dispose of its remaining shareholding in Olam Agri in two tranches.
Meanwhile, it was focusing on unlocking value for its remaining businesses and Olam Food Ingredients (ofi), including an ofi initial public offering.
Verghese said that with Salic, the group expected to further deliver on its shared vision and focus on sustainable sourcing.
Cant agree w you more .....and most likely wonder how to wait till end of this year for OLAM....why ?
Already Balance sheet show 38B liabilities .....of this 24B are called CURRENT liabilities ....so even if this sale is $5B ...which is less, how much can
it pay down its debt ? ( short term debt $9.9B ) .....please look into the balance sheet and DYODD
So unless they can continue to have good cheap loan , wonder how to par down its loan ( esp after selling off this big portion. )
Hope I am wrong .
Already Balance sheet show 38B liabilities .....of this 24B are called CURRENT liabilities ....so even if this sale is $5B ...which is less, how much can
it pay down its debt ? ( short term debt $9.9B ) .....please look into the balance sheet and DYODD
So unless they can continue to have good cheap loan , wonder how to par down its loan ( esp after selling off this big portion. )
Hope I am wrong .
popby88 ( Date: 07-Mar-2025 13:18) Posted:
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I might afraid the minority Shareholders can only get peanuts from the sales of Olam Agri. Sharesholders will have the EGM to vote for or against the proposed sales of Olam Agri next month. Senior Management love 
to say " To unlock and realise value for Shareholders " . Let' s see how much is the Group CEO and CFO' s remuneration in AY24 vs how much special dividend for their Shareholders.
to say " To unlock and realise value for Shareholders " . Let' s see how much is the Group CEO and CFO' s remuneration in AY24 vs how much special dividend for their Shareholders.
Olam H2 profit falls 83.4% to S$38.4 million pares proposed dividend to S$0.03 per share
Company blames earnings slide on higher net finance costs, exceptional losses in a &lsquo tough year for the industry&rsquo
AGRIBUSINESS giant Olam Group : VC2 -3.85% on Friday (Feb 28) reported a net profit of S$38.4 million for the second half ended Dec 31, down 83.4 per cent from S$230.8 million in the previous corresponding period.
This translated to earnings per share of S$0.0058 for the half-year period, down from S$0.0567 the previous year.
Earnings declined as earnings before interest and tax (Ebit) growth was offset by &ldquo a significant increase in net finance costs and higher net exceptional losses&rdquo , noted the group.
Finance costs for the half year rose to S$933.3 million from S$684.9 million.
The exceptional losses were mainly from the temporary cessation of operations at its food ingredients unit ofi&rsquo s onion and parsley processing plant, as well as the lease surrender and exit of two non-strategic almond orchards in the US.
Excluding these exceptional items, underlying profit fell 47.9 per cent on the year to S$142.8 million.
Revenue for the period, however, rose 24 per cent to S$29.2 billion from S$23.6 billion.
Sales volume for H2 grew 11.2 per cent and Ebit was up 10 per cent at S$1 billion, led by strong growth from the group&rsquo s ofi and Olam Agri units, which offset higher losses from the remaining Olam group.
Olam&rsquo s board proposed a final dividend of S$0.03 per share, down from S$0.04 per share the prior year. This takes the full-year dividend to S$0.06 per share, down from S$0.07 per share the year before. The dividend will be paid on May 14, following the record date of May 6.
For the full year, net profit declined 69 per cent to S$86.4 million from S$278.7 million. This was because Ebit growth was offset by the significant increase of S$445.7 million in net finance costs, which was driven by elevated net debt levels from price-led working capital increases.
Revenue, however, climbed 16.3 per cent to S$56.2 billion from S$48.3 billion, due to high revenue growth from ofi, on the back of input price increases.
Challenging price condition
Net gearing at end-2024 increased to 2.79 times from 1.73 times at end-2023, which Olam&rsquo s co-founder and group chief executive officer Sunny Verghese attributed to &ldquo extraordinary price situations&rdquo of commodities such as cocoa and coffee in 2024, during a results briefing on Friday.
A Shekhar, ofi&rsquo s CEO, noted that 2024 saw increased volatility, record price peaks and supply challenges across several key products.
&ldquo It&rsquo s been the toughest year to manage and balance all these constituencies and stand by them... it&rsquo s been tough for the whole industry,&rdquo he said.
As ofi has been directing capital towards global sourcing, total invested capital increased significantly to S$17.4 million in 2024, up 47.5 per cent from S$11.8 million in 2023. Shekhar added that the capital growth is reflected in &ldquo higher readily marketable inventories&rdquo , which will keep its factories running.
Full-year sales volume was up 12.5 per cent at 49.6 million tonnes, with 90.9 per cent contributed by its departing unit, Olam Agri.
On Feb 24, Olam said that it had entered into a conditional sales and purchase agreement with Saudi Agricultural and Livestock Investment Company (Salic), to dispose of all its remaining shareholdings in Olam Agri in two tranches, while focusing on unlocking value for the remaining Olam group businesses and ofi, including an ofi IPO.
The first tranche involves 44.58 per cent of the stake, which Salic will acquire for about US$1.8 billion. This implies an equity valuation of US$4 billion of the whole of Olam Agri.
Following that, Salic&rsquo s stake in Olam Agri will be raised to a controlling 80.01 per cent, from the current 35.43 per cent.
Within three years of the completion of the first tranche, the group will sell the remaining 19.99 per cent stake in Olam Agri via a call/put option.
Including the initial sale of a 35.43 per cent stake in Olam Agri in 2022, Olam would have raised total gross proceeds of US$3.9 billion, and accreted US$2.7 billion to its equity reserves, from the 100 per cent divestment of Olam Agri.
Continued volatility
Verghese expects continued volatility stemming from geopolitical tensions, US trade policies, and a potential revival of interest rate hikes amid uncertain inflation outlook.
He noted that Olam, as one of the few players in both upstream and downstream commodity businesses, has faced the &ldquo full brunt of this market volatility&rdquo .
While the group continues navigating the &ldquo exceptional circumstances&rdquo , Verghese highlighted that it will focus on pushing through the divestment of Olam Agri, and reducing losses of the remaining Olam group.
&ldquo We will hopefully make some progress in selling some of the exiting assets that have been earmarked for divestment,&rdquo he added.
CEO just supported 500 lots at 99 cents. Too little too late...? ...sigh
Olam just delivered another set of disappointing results but the Group CEO ($8 million remuneration in 23) and other senior management still getting big fat salaries. Not fair to their shareholders. Blood suckers wanted to leech The Company until it dry up.
popby88 ( Date: 22-Jan-2025 23:39) Posted:
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they are selling the whole Olam agri , by right the debt will be transfer to Saudi... but how much of the 20B??
saudi so goodu meh ?
saudi so goodu meh ?
Black hole!
o
o
Debt 20billion, how much is belong to Olam Agri, will it be transfered to saudi side or will it be retained by OFI. They only collect 5 billion from saudi then how to pay the 20 billion debt.. Very confusing and no explanation. Why Temasek so quiet.
Mgmt don?t care liabilities, the plan to slowly pay for the longest time since the have a credit line via T? just keep pay fat salaries and give dividends and long as profit for the year.. lousy mgmt..
FATABA ( Date: 28-Feb-2025 16:11) Posted:
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Look at the liabilities .....$20B .....how to pay up with interest rate staying put.
DYODD
DYODD
FOREVERFREEDOM ( Date: 28-Feb-2025 14:55) Posted:
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After all the good and bad news.. price seems bottom.. cherry pick for short term Kopi money..dyod..
Again, FY2024 EPS 1.4c, total dividend for the year 6c (interim 3c and final 3c)?
Where the money from?
Last FY EPS 6.4c, total dividend paid 7c.
Where the money from?
Last FY EPS 6.4c, total dividend paid 7c.
Joelton ( Date: 28-Feb-2025 12:27) Posted:
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Lousy set of results?
Olam H2 profit falls 83.4%, proposes lower dividend of 3 cents per share
https://www.invest-alpha.sg/view& id=959