SINGAPORE: Commodity trader Olam International said on Monday (Jan 20) that it will create two separate businesses focused on food ingredients and agricultural supply and may look to list them as part of its multi-year revamp.
The decision comes a year after the Singapore-based firm exited four businesses and said it was investing US$3.5 billion in key growth areas, such as edible nuts, coffee and cocoa.
AdvertisementAdvertisement"We believe this will enable us to explore potential carve-outs and IPOs in a sequential manner and attract additional investors who are aligned with the vision of these two new groups ..." CEO Sunny Verghese said in a statement.
Olam, which counts Temasek Holdings as its top shareholder, will form Olam Food Ingredients and Olam Global Agri as part of the re-organisation.
Verghese will take on the chief executive role of Olam Global Agri on top of his position as group CEO.
The trader has been increasing its focus on products in which large trading companies do not have a sizable presence as part of its strategic plan to 2024.
AdvertisementAdvertisementJapanese trading house Mitsubishi Corp is Olam's second-largest shareholder.
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