Mitsubishi investsin 80% equity interest in Olam Grains Australia

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Publish time: 24th June, 2014      Source: www.cnchemicals.com
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June 24, 2014

   

Mitsubishi investsin 80% equity interest in Olam Grains Australia

   
   
   

   

Agri-business company, Olam International Limited has announced a partnership with Mitsubishi Corporation, in which the latter will invest US$64.0 millionin an 80.0% equity interest in its wholly owned subsidiary, Olam Grains Australia (OGA).

   

   

The partnership will leverage growth opportunities in the Australian grains business.

   

   

The enterprise valuation at 100% of OGA is US$80.0 million, including working capital delivered at closing. The price consideration was determined on a ''willing-buyer, willing-seller'' basis.

   

   

OGA''s business comprises mainly of origination, trading, logistics and marketing activities as well as a 32.5% stake in Newcastle Agri Terminal, which commenced operations in February 2014. Olam will continue to hold a 20.0% equity interest in OGA.

   

   

Said Olam''spresident and global head of grains business, KC Suresh: "MitsubishiCorporation is our partner of choice in leveraging the growing Asian demand for grains and competing effectively in the Australian grain industry. Together, we plan to invest in upcountry procurement and logistics to scale up our local presence and further build a differentiated and competitive model in Australia."

   

   

Subject to standard closing conditions, the transaction is expected to be completed in early 2015.