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How much % does Temasek have to gain before being able to privatise Olam?

Is the jump to S$2.40 "indicative" that the consortium doesn't have sufficient shares to take Olam private?
Finding the Value in a Speculative World
Mitsubishi buys into Olam grain operations

Andrew White

Associate Editor
THE Asian food bowl theme is sometimes overstated, but it remains a potent lure for international operators to the Australian market, as highlighted by Mitsubishi’s decision to take a majority stake in Olam International’s local grain-handling operations.

The giant Japanese conglomerate is investing $US64 million ($68.1m) to take 80 per cent of Olam Grains Australia as a precursor to further expansion of the venture on Australia’s eastern seaboard.

The deal includes 12.5 per cent of the 32.5 per cent OGA holds in the Newcastle Agri Terminal, alongside Western Australia’s CBH Group and Glencore Xstrata, and is likely to be a precursor to further investment in grain storage and handling infrastructure.

Bob Dall’Alba, country head for Olam Australia, said the Mitsubishi joint venture, to be renamed Agrex Australia, would investigate investment in up-country grain storage and possible new port sites and become a much bigger business than the 1.5 million tonnes a year of exports it currently handles.

“What has had the most impact is that the so-called deregulation of the grains market has not really allowed people to get the services they require to control their own destiny,’’ Mr Dall’Alba said.

The deal was still being negotiated while GrainCorp was finalising a $200m overhaul of its network and the Australian Competition & Consumer Commission was developing a draft mandatory code of conduct for grain ports.

The deal could be good news for growers along the eastern seaboard who will have more competition for their crop as poor conditions in Queensland and northern NSW are leading to expectations of another small harvest.

But it means more pressure for GrainCorp with a better capitalised competitor operating near its Carrington terminal at Newcastle and looking to develop more port capacity.

Sumitomo staked its place in February after taking out the local share of the Alan Winney-led Emerald Group that has a terminal in Melbourne and is building another at Port Kembla, south of Sydney, as part of the Quattro consortium. Archer Daniels Midland has yet to declare its intentions for GrainCorp after being stuck with a 20 per cent stake.
Now he can song and dance to his own exclusive audience...

Olam CEO identifies six challenges
Group has activist role to play in environmental responsibilities
THE chief executive officer of Olam International has identified six developmental challenges which industry stakeholders, including Olam, have to address this century.
Sunny Verghese, also the group managing director of the commodity firm, listed them as: food security, water security, climate change, energy security, building a fresh paradigm of sustainable and profitable growth and finding inclusive growth that reduces inequality.
Writing in a blog entry marking Olam's 25th anniversary, he said that these six challenges are often looked at by policymakers, governments, think-tanks and companies in silos instead of in concert so that integrated solutions can be found for them.
He called on Olam to be a voice to raise awareness of these fundamental challenges and to create a debate on the way forward.
sounds like a small country, Big Grin

1) food security
2) water security
3) climate change
4) energy security,
5) building a fresh paradigm of sustainable and profitable growth and finding inclusive growth that reduces inequality.

Olam sells 25% of packaged food business to Sanyo

OLAM International is selling a 25 per cent stake in its packaged food business to Japanese noodle manufacturer Sanyo Foods for US$187.5 million.
Aimed at capitalising on growth opportunities in sub-Saharan Africa, the deal is expected to be completed by October-December this year, which is the second quarter of Olam's FY2015.
As Olam will hold the majority stake of 75 per cent, it will retain management control of the packaged foods business.
Said Olam's executive director of finance and business development A Shekhar: "The partial monetisation of our packaged foods business allows us to unlock the intrinsic and hidden value in our portfolio and puts us in a better position to continue further investment into this platform while still retaining majority ownership and management control."
As long as Temesek is still in the game, there is only one direction for Olam. Up!
Truthfully speaking, even if Temasek backs Olam it can still go down, just look at NOL, Statschip in the past.

Its very important for the fundamentals to support the prices. Judging by the current quality of Olam's balance sheet and cash flow genreration, if i were to represent the minority shareholders and Olam offers $2.50 per share, I will give my personal advise to accept the takeover and put the money into stronger fundamental companies
The headline seems misleading...

(not vested)

Olam 4Q net profit drops 43.9% to $31.8 mil

Commodities trader Olam International said on Friday its net profit for the quarter ended June fell 43.9% to $31.8 million.

Full-year net profit jumped 67.8% to $608.5 million on off-off gains, beating an average forecast for the period of $400.35 million based on forecasts from 15 analysts, according to Thomson Reuters data.

Olam recommended a cash dividend of 5 cents per share for the year, as well as a special dividend of 2.5 cents per share.
After the voluntary cash offer early this year, how much does Temasek own in Olam now?
How much is the threshold for the Offer to be unconditional?
Finding the Value in a Speculative World

New major shareholder, but no change in strategy: Olam
The company posts Q4 net profit of S$31.8 million, down 43.9 per cent

The group missed its target of achieving positive free cash flow by FY2014, but Mr Verghese says crossing that line continues to be a priority for the firm. - ST FILE PHOTO
EVEN with a new major shareholder in Temasek Holdings, Olam International will remain focused on its strategy of generating free cash flow more quickly and optimising its balance sheet.
"I believe that all our shareholders believe we're heading in the right direction, and are patient for us to execute our strategy," said its chief executive, Sunny Verghese, when asked what expectations Temasek might have of the firm.
He added: "We don't take specific directions from one shareholder, but from all our shareholders."