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Shares of Singapore's Olam surge after fund-raising plan
December 4, 2012 / 1:20 AM / 5 years ago

Shares of Singapore's Olam surge after fund-raising plan

SINGAPORE, Dec 4 (Reuters) - Shares of Olam International Ltd jumped more than eight percent after the commodities trader, which is battling short-seller Muddy Waters, announced an issue of bonds and warrants backed by 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 deal is to be offered pro rata to Olam shareholders and Temasek Holdings, which has a 16 percent stake, and said it would buy rights not taken up by other investors.

Olam shares rose as much as 8.6 percent to S$1.71, their highest level since Nov. 22.

“This is a swift and decisive move which will likely relieve debt pressure, but may come at a price of eroding minority shareholders’ confidence in the longer-term,” Maybank Kim Eng said. (Reporting by Eveline Danubrata; Editing by Edwina Gibbs)

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