Food ingredients and agriculture firm Olam International announced Friday that it plans to list its ingredients business in 2022. The move comes after the company debuted a re-organization effort in January 2020 to create into two operating groups, Olam Food Ingredients (OFI) and Olam Global Agri (OGA).
“We believe the planned carve out, concurrent demerger, and listing will unlock significant value for all our existing shareholders while also attracting new long-term investors who are aligned to OFI’s compelling new vision and growth strategy,” said A. Shekhar, Olam Group executive director and chief executive of OFI, in a company release.
The OFI business includes cocoa, coffee, dairy, nuts, and spices. Olam’s OGA unit handles commodities, cotton, edible oils, grains, animal feed, rice, and protein.
“OFI is a truly global business and its independent listing is a critical first step in unlocking its long-term value,” Olam co-founder and group CEO Sunny Verghese said in a statement. “At the same time, we continue to explore strategic options for OGA to unlock further value for the group, while maintaining the listing of our holding company in Singapore.”
Olam expects the carve out and separation of the two operating groups to reach completion by the end of this year.