Olam Group's (SGX:VC2) wholly owned subsidiaries, Olam Holdings and Olam Agri, entered into a conditional sale and purchase agreement with Saudi Agricultural & Livestock Investment Company (SALIC) to sell 1,512,182,600 shares in Olam Agri Holdings.
The shares represent around 44.58% of the issued and paid up capital of Olam Agri, according to a filing with the Singapore Exchange on Monday.
SALIC International Investment, a wholly owned subsidiary of SALIC, currently holds 35.435 of the Olam Agri Holdings' capital.
The base consideration for the sale shares is around $1.78 billion.
The proposed sale will allow the company to divest the subsidiary at an attractive price and help it focus on its remaining core businesses.
Shares of the company were up over 5% in recent trading.
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