World Grain - October 2015 - (Page 18)

NEWSREVIEW Mitsubishi to buy 20% share of Olam SINGAPORE - Mitsubishi Corporation (MC) will purchase a 20% stake in Olam International in two separate deals announced on Aug. 27, with a value of at least S$1.34 billion ($956.3 million). Olam said it proposes to raise additional equity capital by issuing an aggregate of S$332.73 million ($237 million) new ordinary shares to MC at an issue price of S$2.75 ($1.96) per share to raise gross proceeds of approximately S$915 million ($653 million). The shares represent approximately 12% of the enlarged issued and paid up share capital (excluding treasury shares) of the company immediately after completion of the subscription agreement. In a separate and independent transaction, MC said it will also acquire approximately 222 million secondary shares from the Kewalram Chanrai Group, representing approximately 8% of the enlarged issued and paid-up share capital (excluding treasury shares) of Olam immediately following the issuance of such new shares. On completion of both these transactions, MC will become Olam's second largest shareholder with a 20% shareholding in the company. Temasek Holdings will remain Olam's majority shareholder with a 51.4% controlling stake in the enlarged issued and paidup share capital (excluding treasury shares) of the company upon completion of the subscription agreement. Mitsubishi has interests including consumer goods, automobiles and food. A stake in Olam, a leading trader of agricultural commodities such as cocoa and almonds, will lift the Japanese ¿UP¶VSUR¿OHDVDJOREDOSOD\HULQWKHIRRGLQGXVWU\ The issue price of S$2.75 ($1.96) per share represents a 29.3% premium over the weighted average share price for the 12 months preceding the date of the subscription agreement. The issue price also exceeds the highest closing price in the preceding one year period before the transaction announcement date. The issue price was determined through a competitive bidding process. "This transaction is consistent with the objectives of the successful voluntary general offer that was concluded in May 2014 ZKHUH ZH VRXJKW WR FKDQJH RXU VKDUHKROGHU SUR¿OH DQG DWWUDFW more long-term shareholders to our register," said A. Shekhar, 2ODP¶V H[HFXWLYH GLUHFWRU RI ¿QDQFH DQG EXVLQHVV GHYHORSPHQW "We see Mitsubishi as a strategic investor who is well aligned to our long-term growth strategy. This transaction will allow us to pursue selective value accretive investment opportunities that are presented by the current macro-economic uncertainty and depressed commodity market conditions." This transaction sets a strong platform for a long-term strategic partnership between Olam and MC, with several mutually benH¿FLDOSRWHQWLDOFROODERUDWLRQRSSRUWXQLWLHVLQFOXGLQJWKHVHWWLQJ XSRIDSURSRVHGMRLQWYHQWXUHLQ-DSDQWRPDUNHWVSHFL¿FSURGucts of Olam that can leverage MC's strong distribution and retail presence and Olam's deep origination expertise in those products, Olam said. For more information, see Page 106. 18 October 2015 / World Grain /

Table of Contents for the Digital Edition of World Grain - October 2015

World Grain - October 2015
Table of Contents
From the Editor-in-chief - Precision agriculture versus GMO’s
Calendar of Events
Registration opens for IPPE, Jan. 26-28, 2016
News Review - Louis Dreyfus hires new CEO, ending 17-month search
Ardent Mills finalizes deal to acquire Mondelez facility
Glencore considers selling stake in agricultural unit
Former Cargill executive to lead The Andersons
Flour milling specialist joins KSU faculty
Viterra to acquire oilseed processor
Nisshin plans major expansion of Canadian flour mill
Bunge to acquire Brazilian wheat miller
Cargill executive returns as member of Leadership Team
Woodchip company closer to exporting grain with ACCC decision
Australia plans to standardize, upgrade freight network
The Andersons completes grain facility updates
Mitsubishi to buy 20% share of Olam
Cargill to double capacity at soybean crush facility in Egypt
Grain Market Review - Rice
Country Focus - Indonesia
Feature - Ardent Mills coming into its own
Feature - More than a large number of mills
Feature - Face of Canada’s grain industry changing
The geography of demographic changes in Canadian agriculture
Feature - 'We're in dire straits'
Dr. Stephen Blank profile
Feature - Ship loading/unloading projects flourish
Port News Roundup
Feature - Australia seeks FTA's with Asia
Feature - Grain Market Roundtable
Milling Operations - Whole wheat flour milling, storage challenges
Feature - Global flour trade holding steady
IGC: Industrial use of grains forecast higher in 2015-16
Feature - Protecting the lifeblood of your operation
Technical Profile - Staying in control of mycotoxins
Supplier News
Product Showcase
World Grain Archive
Ad Index/Reader Information Form International Faxback Program

World Grain - October 2015