SINGAPORE (REUTERS) – Agribusiness giant Olam International, which is dividing its portfolio of diverse products into two new operating businesses, said on Friday (Feb 26) it plans to list its food ingredients segment by the first half of next year.
The carve-out and separation of Olam Food Ingredients (OFI), which includes its cocoa, coffee and edible nuts businesses, and Olam Global Agri (OGA), which includes grains and animal feed, edible oils, rice and cotton, is estimated to be completed by the end of 2021.
Olam, in which Singapore state investor Temasek Holdings is the biggest shareholder, flagged the plan in January last year.
The company is pursuing similar strategic options for OGA, it said.
Olam also reported that net profit for the 2020 full year fell 22.3 per cent to $245.7 million due to an impairment charge. Operational profit after tax and minority interests, which excludes exceptional items, rose 36 per cent to $677.8 million.
“We are seeing market conditions and sentiments beginning to improve as economies snap back from the worst impacts of COVID-19 in 2020 and we expect this favourable market environment to continue to improve in 2021,” said CEO Sunny Verghese.
