Olam Group shares rose as much as 9.4% in Singapore on Friday, the biggest intra-day gain since Aug 13, before easing slightly.

Olam Group received a non-binding offer from a state-owned Saudi investment firm for its agribusiness unit, according to a statement Friday, confirming an earlier Bloomberg News report.

“The company is reviewing and in discussions regarding a potential sale of its stake in the Olam Agri business,” Olam said. “No definitive terms or formal legal documentation have been agreed upon.” 

Citing people familiar with the matter, Bloomberg had reported that Saudi Agricultural & Livestock Investment Co, controlled by the country’s sovereign wealth fund, was in advanced talks on a transaction that would value Olam Agri Holdings at about US$4 billion. 

The Saudi firm already owns just over a third of of Olam Agri, which it bought for US$1.24 billion in 2022. Salic is a unit of the Public Investment Fund and aims to achieve food security for the kingdom, investing domestically and overseas.

Olam shares jumped as much as 11% in Singapore prior to the company’s statement Friday, the biggest intraday gain since Feb. 19.

Olam had been working on a potential listing of the agribusiness unit in Singapore and Riyadh last year, though the share sale preparations later stalled, according to the people, who asked not to be identified because the information was private. 

A representative for Salic declined to comment.

Olam Agri, which sells grains and seeds and makes everything from edible oils to pasta, is one of Olam’s main units. It was created in a reorganization in early 2020. The Gulf region is a growing market for the commodities it supplies and Saudi Arabia is putting a strong emphasis on food security.