Friday 09 December 2022

ASIA – Temasek won’t raise offer for Olam International

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SINGAPORE – The Temasek Holdings subsidiary leading the multi-billion-dollar takeover bid for Olam International said late on Monday that it will not raise its offer price for shares, warrants or convertible bonds issued by the agricultural commodities firm.

The declaration means Breedens Investments, which is the Temasek unit, will not be allowed to subsequently increase the price offered to holders of the Olam securities.

Singapore-listed Olam is one of the world’s biggest traders of coffee, rice and cashew nuts. It was rescued by Temasek after coming under attack from short-seller Muddy Waters in late 2012.

Breedens had offered S$2.23 in cash for each Olam share, as well as S$0.646 per warrant and US$850.37 in cash per US$1,000 in principal amount of convertible bonds.

Based on the latest filing, Breedens owns, controls or has agreed to acquire Olam shares amounting to 61.3 percent of the total issued share capital.

The proportion falls to 54.2 per cent based on Olam’s maximum potential share capital, which is larger because of the warrants and convertible bonds.

Breedens and its partners control or have agreed to buy 13.7 per cent of the total issued warrants, but have none of the convertible bonds.


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