Singapore’ Olam International has sell its remaining 50% stake of Far East Agri Pte. Ltd. for around US$85.0 million to its joint venture partner Thailand-based Mitr Phol Sugar Corporation. After the transaction, the global food and agriculture supplying company food book a capital gain about US$40.0 million.
Olam divest is part in the sugar joint venture is in line with its six-year Strategic Plan announced in 2019. The transaction is expected to be completed by end-March 2020, subject to customary closing conditions.
In 2017, Mitr Phol announced will invest US$100 million for a 50% stake in Far East Agri Pte Ltd, which operates a sugar refinery in Indonesia through PT Dharmapala Usaha Sukses in Cilacap, Central Java. The producer acquired 100% shares of Dharmapala on Oct. 7, 2007 through direct wholly-owned subsidiary Far East Agri.
Under the new agreement, Far East will explore the development of a green-field sugar milling facility in East Java. Upon completion in 2020, the sugar mill will source 1.2 million metric tons of cane from farmers.