singapore – Singapore-listed agri-food giant Olam International said on Monday (Jan 20) it will create two separate businesses focused on food ingredients and agricultural supply and may look to list them as part of its multi-year re-organisation.
The decision comes a year after the Singapore-based firm exited four businesses and said it was investing US$3.5 billion (S$4.7 billion) in key growth areas, such as edible nuts, coffee and cocoa.
“By simplifying our businesses across two distinct and coherent groups,each with a clear vision for profitable growth, it sharpens our focus and provides opportunities to capitalise on key market trends, while continuing to leverage the benefits of the Olam group,” chief executive officer Sunny Verghese said in a statement.
“We believe this will enable us to explore potential carve-outs and IPOs in a sequential manner and attract additional investors who are aligned with the vision of these two new groups in order to maximise the value of our business,” he added.
Olam, which counts Singapore state investor Temasek Holdings as its top shareholder, will form Olam Food Ingredients and Olam Global Agri as part of the re-organisation.
Mr Verghese will take on the chief executive role of Olam Global Agri on top of his position as group CEO.
Mr A Shekhar will step down as Olam's chief operating officer with immediate effect to become CEO of Olam Global Agri.
Olam has been increasing its focus on products in which large trading companies do not have a sizable presence as part of its strategic plan to 2024.
Japanese trading house Mitsubishi Corp is Olam's second-largest shareholder.
With additional information from The Straits Times