By Abdullahi Lukman
Olam Group Ltd. has announced a sweeping restructuring plan, including a $500 million capital injection into its food ingredients unit and a $2 billion investment from major shareholder Temasek Holdings.
The move is aimed at strengthening the company’s balance sheet, streamlining operations, and preparing its business units for future independence or sale amid rising global economic uncertainty.
The Singapore-based commodities giant said the capital infusion will focus on Olam Food Ingredients (OFI), a core growth area, while Temasek’s funding will support the group’s remaining operations and help reduce debt.
Proceeds from the earlier $1.8 billion sale of Olam Agri to Saudi Agricultural and Livestock Investment Company (SALIC), which is expected to yield £2.58 billion ($3.27 billion), will also contribute to the restructuring effort.
“We are positioning our operating groups to thrive independently while reducing debt and enhancing shareholder value,” said Sunny Verghese, Olam’s co-founder and Group CEO.
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The company also plans to return capital to shareholders through special dividends and a resumed share buyback program as divestments progress. At the same time, Olam is exploring a potential dual listing of OFI in Europe and Singapore, depending on market conditions.
The restructuring comes amid turbulent global markets. Prices of key agricultural commodities—such as cocoa, coffee, and grains—have been volatile, impacted in part by renewed trade tensions and tariffs, particularly between the United States and China.
“Tariffs will have some impact, especially on trade between the U.S. and China,” Verghese acknowledged. “However, the diversified nature of global production and consumption has historically cushioned such effects.”
Olam’s renewed focus on OFI supports its long-term strategy to meet rising global demand for sustainable food ingredients.
The company is expanding its portfolio in plant-based ingredients, cocoa, spices, and dairy, aligning with shifting consumer preferences and ESG commitments.
Analysts view the restructuring as a strategic response to mounting macroeconomic pressures, with potential to unlock value and position the company for resilient growth.
