Olam to sell Open Country shares to Talley’s

Olam International Limited, a leading global, integrated supply chain manager and processor of agricultural products and food ingredients, has entered into an agreement to sell up to 14.99% stake in Open Country Dairy Limited (“OCD”), New Zealand to Talley’s Group Limited (“Talley’s”) for up to NZ$46.5 million. Olam is currently the second largest shareholder of OCD with a 24.99% stake after Talley’s 55.54% holding. The transaction will be completed through a combination of direct sale of shares and acceptance of a partial takeover offer from Talley’s in accordance with the requirements of the New Zealand Takeovers Code. Irrespective of the acceptances received under the takeover offer from OCD shareholders other than Olam, the Company will continue to own a minimum 10.00% stake in OCD. Based on the terms of the agreement, the effective sale price of Olam shares in OCD is expected to be at or above the current carrying value of its OCD investment. The transaction will release cash for Olam while still maintaining product off-take arrangements with OCD, which are strategically important for Olam’s Dairy supply chain business. The transaction is not expected to have any material financial impact on Olam for the financial year ending June 30, 2014. Click here to download the full press release