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Temasek unit offers to buy Singapore's Olam, values firm at $4.3 billion
March 13, 2014 / 11:53 PM / 4 years ago

Temasek unit offers to buy Singapore's Olam, values firm at $4.3 billion

A man walks past a logo of Olam International Limited at its office in Singapore November 29, 2012. REUTERS/Edgar Su

SINGAPORE (Reuters) - A unit of Singapore’s state investor Temasek Holdings TEM.UL made an offer on Friday to buy all of the shares in commodity trading firm Olam (OLAM.SI) from its minority shareholders for S$2.23 per share, valuing the company at around S$5.44 billion ($4.3 billion).

Breedens Investments, the Temasek unit, along with Olam’s family share holders, members of its executive committee, and Arandda Investments, another Temasek unit, already hold around 52.5 percent of Olam shares.

“Breedens wishes to increase its shareholding to support Olam’s strategy and growth plans for the long term,” it said in a statement.

The offer price is an 11.8 percent premium over Olam’s last traded price.

Olam came under attack from short-seller Muddy Waters in late 2012 for its accounting practices, only to be rescued then by Temasek. A few months later, it set out to cut its capital spending and debt levels.

($1 = 1.2661 Singapore Dollars)

Reporting by Rachel Armstrong; Editing by Edwina Gibbs

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