Olam International Limited (Olam) announced today that it has entered into a subscription agreement with Mitsubishi Corporation (MC). 

Subject to the terms and conditions of the Subscription Agreement, Olam proposes to issue 332.73 million new ordinary shares (New Shares) to Mitsubishi Corporation at S$2.75 per share (Issue Price), representing about 12.0% of the enlarged issued and paid-up share capital (excluding treasury shares) of Olam immediately following the issuance of such New Shares, raising S$915.0 million of new growth capital for the Company. The Issue Price of S$2.75 per share was determined through a competitive bidding process.

In a separate transaction, MC has also announced that it will also acquire approximately 222.0 million secondary shares from the Kewalram Chanrai Group, representing approximately 8.0% of the enlarged issued and paid-up share capital (excluding treasury shares) of Olam immediately following the issuance of such New Shares. 

On completion of both these transactions, MC will become Olam’s second largest shareholder with a 20.0% shareholding in the Company.

Temasek will remain Olam’s majority shareholder with a 51.4% controlling stake in the enlarged issued and paid-up share capital (excluding treasury shares) upon completion of both transactions.

Mr David Heng, Senior Managing Director, in Temasek said, "Mitsubishi’s strong sourcing and distribution capabilities in the food sector, under the Living Essentials Group, will add value to Olam’s long term growth. We welcome Mitsubishi as a strategic partner in Olam, and look forward to working with them." 

For more details, please refer to Olam's press release here.