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Maybank downgrades Olam to 'sell' after fund-raising plan
December 4, 2012 / 12:40 AM / in 5 years

Maybank downgrades Olam to 'sell' after fund-raising plan

SINGAPORE, Dec 4 (Reuters) - Maybank Kim Eng downgraded Olam International Ltd to ‘sell’ from ‘hold’ and cut its target price to S$1.42 from S$1.75 after the commodities trader announced its fund-raising plan, which is backed by Singapore state investor Temasek Holdings.

Olam is issuing a nominal $750 million of 6.75 percent five-year bonds at a price of 95 percent, raising $712.5 million.

The bonds have warrants attached that will allow holders to buy a total 387 million shares at $1.291, which would raise $500 million if they were all exercised. (Reporting by Eveline Danubrata; Editing by Paul Tait)

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