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It should not affect the payment quantum, if Olam sticks to its guidance that all proceeds will be paid as special dividends. Furthermore, at end 2025 Olam had over S$2bn of cash on its balance sheet and will now have even more following the Olam Agri sale completion, so it can easily afford to redeem the bond without using the Mindspring proceeds. And that is even before considering Olam could borrow to redeem the bond.
All that said, one cannot be 100% sure that Olam will do what it said it would do. And that doubt is why Olam' s share price is less than 50% of its fundamental value. If there was no doubt the share price would be a lot higher than it is.
All that said, one cannot be 100% sure that Olam will do what it said it would do. And that doubt is why Olam' s share price is less than 50% of its fundamental value. If there was no doubt the share price would be a lot higher than it is.
tonytony ( Date: 16-May-2026 16:03) Posted:
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if this bond is redeemed , will it affect the special dividend payout quantum from Mindspring ?
Alignment ( Date: 16-May-2026 15:38) Posted:
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Yes I think they will redeem.
If they don' t, in July the interest rate will step up from the current 5.375% to SOR + 4.807% + 2% so at least 8%. Olam has lots of financing options so the perp will be redeemed. The fact the perp trades at par indicates the market believes this too.
Depending on the financial flexibility Olam wants, it could probably raise debt at less than the current 5.375% level. If it went with another perp for the greater flexibility, the rate would be similar or perhaps a bit higher.
If they don' t, in July the interest rate will step up from the current 5.375% to SOR + 4.807% + 2% so at least 8%. Olam has lots of financing options so the perp will be redeemed. The fact the perp trades at par indicates the market believes this too.
Depending on the financial flexibility Olam wants, it could probably raise debt at less than the current 5.375% level. If it went with another perp for the greater flexibility, the rate would be similar or perhaps a bit higher.
alexvar ( Date: 15-May-2026 18:36) Posted:
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CEO Sunny repeated in FY result breifing and in recent AGM , the total proceeds of about USD550m will be distributed as special dividends to shareholders as soon as the deals are closed . This new Chairman seemed to say the otherwise ???
alexvar ( Date: 15-May-2026 18:36) Posted:
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Wolf Money(Hotel Grand Central and Olam Group)sold
https://lonewolfinvestor.blogspot.com/2026/05/wolf-moneyhotel-grand-central-and-olam.html
As promised by Olaim management before,
Do you guys think that Olaim will redeem the SGD bonds OLGPSP 5.375% Perpetual Corp in July 2026?
Do you guys think that Olaim will redeem the SGD bonds OLGPSP 5.375% Perpetual Corp in July 2026?
lets sgo
1.3
| OGH (previously Remaining Olam Group) OGH: S$175 million equity Collectively, OGH consisting of Olam Palm Gabon, Olam Rubber Gabon, Rusmolco, Caraway, ARISE P& L, Mantra, Gabon Fertiliser Project, together with Mindsprint and Terrascope, has a total invested capital of approximately S$2.8 billion as at end-2025. OGH has huge debts, and shitty assets such as in Russia and Gabon? OGH Total assets S$2.8 billion OGH equity: S$175 million OGH Total liabilities: staggering debts of S$2.6 BILLION OGH LEVERAGE (total assets / total equity): 16X Seems like OGH is a major indebted mess! dydd |
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Will SALIC buy Rusmolco?
While Rusmolco was explicitly excluded from the original scope of the Olam Agri deal, SALIC remains a primary candidate for a future purchase for several reasons:
- Direct Strategic Fit: SALIC' s mandate is to secure Saudi food security{C}, specifically in meat and dairy&mdash areas where Rusmolco is a market leader.{C}{C}
- Olam&rsquo s Exit Strategy: Olam Group has publicly stated it plans to " responsibly divest and monetise{C}" all assets within the " Remaining Olam Group" (including Rusmolco) over time to return value to shareholders.{C}{C}
- Consolidation of Russian Assets: Industry experts, such as the Russian Grain Exporters Union{C}, have suggested that SALIC' s entry into the Russian market via Olam Agri opens the door for them to eventually consolidate other local assets like Rusmolco. [1, 2, 3, 5]
Through its series of investments in Singapore-based Olam Agri, SALIC effectively gained control of the terminal and other Russian agricultural assets. [1, 2]
Key Details of the Deal
- Ownership Structure: As of April 27, 2026, SALIC successfully completed a deal to increase its stake in Olam Agri to 80.01%. This followed an initial 35.4% stake acquisition in 2022 for US$1.24 billion.
- The Terminal' s Role{C}: The Azov Grain Terminal is a shallow-water export facility on the Sea of Azov in Russia. It was owned by Olam Agri, making it a primary asset acquired in SALIC' s multi-billion dollar investment.
- Strategic Impact:
- Capacity: The terminal has an annual capacity of roughly 1.4 million tonnes of grain.
- Market Entry: This acquisition is described as a " landmark deal" that provides Saudi Arabia with a direct foothold in the Russian agricultural mar
Rusmolco was excluded from the Olam Agri deal with SALIC because it was not part of the Olam Agri operating group and did not fit the specific strategic scope of that transaction. [1]
Instead, Rusmolco is managed as part of the Remaining Olam Group (OGH), a separate division created during Olam&rsquo s 2020 Reorganisation Plan to hold assets intended for eventual divestment or specialized management. [1, 2, 3, 4]
Key Reasons for Exclusion
- Organizational Alignment: Olam Group is divided into three distinct segments: ofi (food ingredients), Olam Agri (food, feed, and fibre), and OGH. Rusmolco is classified under OGH, along with other " de-prioritised" or gestating assets.
- Specific Transaction Scope: The deal with SALIC focused strictly on acquiring Olam Agri&rsquo s core portfolio, which includes commodities like grains, rice, and edible oils. While Olam Agri does include certain Russian assets like the Azov Grain Terminal, Rusmolco' s focus on dairy farming fell outside this grain and commodity-trading scope.
- Divestment Strategy: Under the Updated 2025 Reorganisation Plan, Olam intends to divest all assets within the Remaining Olam Group (OGH) over time to maximize value for its shareholders, rather than including them in the Olam Agri sale. [1, 2, 3, 4, 5, 6, 9]
Our Re-organisation - Olam Group
Rusmolco (Russian Dairy Company) is one of the largest milk producers in Russia, operating primarily in the Penza region. Established in 2007, it is currently a wholly-owned subsidiary of the Singapore-based Olam Group. [1, 2, 3]
Key Operations & Performance
- Milk Production: Achieved record production of over 270 million litres annually as of early 2026, representing a 25% increase from 2024 levels.
- Livestock: Manages a herd of over 44,000 animals, featuring high-productivity Holstein cows.
- Efficiency: Maintains an average milk yield of nearly 41 litres per cow per day, which is significantly higher than the national average.
- Crop Farming: In addition to dairy, the company manages approximately 137,000 hectares of arable land used for grain cultivation and feed production. [1, 2, 3, 4]
Strategic & Community Role
- Modernization: Rusmolco has allocated over 800 million rubles in 2026 for modernising its agricultural machinery fleet.
- Local Impact: The company is the largest employer in its sector in the Penza region, supporting local infrastructure such as staff housing, kindergartens, and libraries.
- Ownership Structure: While Olam Group recently sold its grain assets (Azov terminal) to Saudi-owned SALIC, Rusmolco remains part of Olam Global Holdings and was not included in that transaction. [1, 2, 3, 4, 5]
For more specific information, you can visit the Official Rusmolco Website.
Alignment ( Date: 11-May-2026 21:00) Posted:
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It' s possible. 2.7% is S$500m for all of Olam' s assets in Russia and Ukraine for both OFI and Olam Agri.
" ofi operates a dairy farming operation and an agri-farming operation to mainly grow the feed for our dairy herd in Russia. It also imports and distributes cocoa, coffee, dairy products and nuts into Russia. In Ukraine, it imports and distributes cocoa, dairy products and nuts. Olam Agri exports grains and oilseeds, including wheat, barley, corn and sunflower oil from both Russia and Ukraine. In Russia, it operates an export terminal in Azov. In Ukraine, it operates warehouses, silos and a grains elevator in Kyiv."
" ofi operates a dairy farming operation and an agri-farming operation to mainly grow the feed for our dairy herd in Russia. It also imports and distributes cocoa, coffee, dairy products and nuts into Russia. In Ukraine, it imports and distributes cocoa, dairy products and nuts. Olam Agri exports grains and oilseeds, including wheat, barley, corn and sunflower oil from both Russia and Ukraine. In Russia, it operates an export terminal in Azov. In Ukraine, it operates warehouses, silos and a grains elevator in Kyiv."
ROG has one company in Russia, Rusmolco , cost of investment should be S$400m ?
In the 2022 AGM Olam answered a question about the Russia Ukraine war saying that its direct exposure to Russia and Ukraine combined was only 2.7% of group invested capital at the time. I have copied the link here https://links.sgx.com/FileOpen/20Apr2022_Olam%20Group_AGM_QA_FINAL.ashx?App=Announcement& FileID=713613
The invested capital of Olam today is bigger than it was in 2021 so 2.7% at the time implies 2.0% today.
This figure includes assets within both Russia and Ukraine that is held by Olam Agri, which as of now is no longer part of Olam. So, stripping that away and the proportion of the figure that relates to Ukraine, the invested capital that Olam has in Russia is not material.
The invested capital of Olam today is bigger than it was in 2021 so 2.7% at the time implies 2.0% today.
This figure includes assets within both Russia and Ukraine that is held by Olam Agri, which as of now is no longer part of Olam. So, stripping that away and the proportion of the figure that relates to Ukraine, the invested capital that Olam has in Russia is not material.
you are sooo wrong! its debt load is not exclusively working capital issue, but also ROG useless businesses in gabon and ruZZia.
Olaim is desperate by selling its cash-generating biz (Olam Agri) to pay down the the billions in debt of ORG (olam remaining group).
this is what happens when you invest hundreds of millions of SGD in ruZZia milk biz LOL
keep paying russian salaries with good sgd, while russian economy and its consumers go down the tube.
dydd
Olaim is desperate by selling its cash-generating biz (Olam Agri) to pay down the the billions in debt of ORG (olam remaining group).
this is what happens when you invest hundreds of millions of SGD in ruZZia milk biz LOL
keep paying russian salaries with good sgd, while russian economy and its consumers go down the tube.
dydd
I disagree with the idea that COVID had a fundamental impact on the business case of Olam. Both from my own knowledge of the business and also looking at the financials. The latter shows COVID had an impact for 1 year which was 2020, and by 2021 profitability had recovered. The debt Olam carries today primarily reflects the increase in working capital as a result of concurrently rising cocoa and coffee prices which really accelerated in 2024, peaked in 2025 and this year is coming back down.
More generally, the point I was making with Temasek and Mitsubishi are these are two companies that did significant diligence before buying in, have a good understanding of materials trading, and also have the influence to improve the value of Olam through the operations of their own businesses. They paid $2.50ish ten years ago probably with a business plan that projecting 10 years out probably would have implied a price today of say $6.50 if they were targeting, for instance, a 10% annualised return. So my view that Olam could be worth $2.60 today is actually already taking a big haircut on the assumptions Temasek and Mitsubishi did 10 years ago. And, whilst I place most emphasis on my own analysis, this gives me some comfort.
More generally, the point I was making with Temasek and Mitsubishi are these are two companies that did significant diligence before buying in, have a good understanding of materials trading, and also have the influence to improve the value of Olam through the operations of their own businesses. They paid $2.50ish ten years ago probably with a business plan that projecting 10 years out probably would have implied a price today of say $6.50 if they were targeting, for instance, a 10% annualised return. So my view that Olam could be worth $2.60 today is actually already taking a big haircut on the assumptions Temasek and Mitsubishi did 10 years ago. And, whilst I place most emphasis on my own analysis, this gives me some comfort.
alexvar ( Date: 08-May-2026 12:14) Posted:
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temasek or mitsubisi bought many years ago before COVID! - their entry price is kinda irrelevant.
olaim group became bloated holding co with a lot of debt and bad cash flow.
paying down the huge debt load and focusing on ofi hopefully gives good free cash flow.
olaim group became bloated holding co with a lot of debt and bad cash flow.
paying down the huge debt load and focusing on ofi hopefully gives good free cash flow.
Alignment ( Date: 08-May-2026 12:06) Posted:
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Buying at a 50% discount to Temasek' s inprice was certainly a profitable trade at AEM resulting in a more than 3x return.