Olam Group will sell 64.57% of Olam Agri's equity to The Saudi Agriculture and Livestock Investment Company (SALIC) in two batches. After closing the transaction, the group is expected to generate approximately US$2.6 billion (S$3.47 billion) in revenue.

Stimulated by the news of the sale, Aolan Group's stock price rose nearly 9% on Monday (February 24), and as of 11 am, it was 1.19 yuan, up 5.31%.

According to Aolan International's statement on Monday, SALIC will acquire 44.58% of Aolan Agricultural's equity for US$1.78 billion (S$2.35 billion). After completing this stage of acquisition, SALIC's stake in Aolan Agriculture will increase to 80.01%.

In the third year after completing the first sale, Aolan Group has the right to exercise the right to sell the remaining 19.99% of Aolan Agricultural equity.

The overall equity valuation of Aolan Agricultural is US$4 billion, 23% higher than the market value of Aolan Group of US$3.250 billion. At the same time, Aolan Agriculture's total valuation is also higher than when SALIC first acquired 35.43% of the company's equity in December 2022, with a premium of 14%.

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Aolan Group will make a profit of approximately US$2.6 billion by selling two batches of Aolan Agriculture. If the 35.43% equity of Aolan Agriculture sold in 2022 is included, the group's total revenue will be US$3.87 billion.

Sunny Verghese, CEO of Olam Group, said the sale of Alam Agriculture is an important milestone for the group since the restructuring announced in January 2020.

“The group will be down to focus on finding strategic options to unlock the value of its subsidiary, including the initial public offering of Ofi,” he said.