Temasek led consortium to buy Olam International in $4.3 bn deal

A consortium led by Singapore's sovereign wealth fund Temasek Holdings, has offered to buy the remaining that it does not already own in commodities trader Olam International in a deal valuing one of the world's biggest coffee and rice traders at $4.3 billion.

The consortium comprising Temasek unit Breedens, Olam's founding shareholders, members of its executive committee, and another Temasek unit Arandda Investments, hold around 52.5 per cent of Olam stock worth around $2.3 billion.

Temasek, which is carrying out the acquisition through its unit Breedens Investments, is offering to pay S$2.23 per share, an 11.8 per cent premium over Olam's last traded price.

Breedens is also offering to buy Olam's outstanding convertible bonds and warrants.

Singapore Stock Exchange-listed Olam had come under attack in 2012 from short seller Carson Block and his research firm Muddy Waters over its accounting practices and its investments.

Olam immediately hit back by suing Muddy Waters, (See: Singapore's Olam sues US short-seller Muddy Waters) but later withdrew its case.

Singapore-headquartered Olam is a leading global agricultural commodities supplier, and currently ranks among the largest 40 listed companies in Singapore.

The company caters to around 12,300 customers across 65 countries with leading positions in many of its businesses including cocoa, coffee, cashew, sesame, rice, cotton and wood products.

It posted net profit of $286 million in 2013 on revenues of $16.4 billion.