According to sources, leading food and agri-business Company, Olam International set sell 50 percent stake in Indonesian sugar joint venture Far East Agri to Mitr Phol Sugar Corporation between $82.5 and $85 million. The deal shows Asia’s biggest sugar and bio-energy producer Mitr Phol to take full ownership of Far East Agri following its prior $100 million investment for a 50% stake in 2017.
The sale of stake comes in line with the company’s six year strategic plan that was announced in 2019 that exhibited exit in the businesses of sugar, fertilizers, rubber and wood products .
The closure of the deal is expected to be completed by end of this month following Far East Agri ceasing to be an associated company of Olam International.
The group’s co-founder and CEO Sunny George Varghese recently simplified its business into two groups, Olam Global Agri (OGA) which would circumference in businesses of animal feed, edible oils, rice, cotton, grains and commodity financial services whereas Olam Food Ingredients (OFI) would transact in business of coffee, cocoa, edible nuts, spices and dairy products.
Varghese will remain to be Olam group’s CEO and be the CEO for Olam Global Agri (OGA) , whereas the group’s Chief Operating Officer A, Shekhar has been named as the CEO for Olam Food
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