Olam Group Divests Minority Share in Olam Agri
May 4, 2023
Trending News ☀️
The Olam Group ($SGX:VC2) has recently announced that it has divested its minority share in Olam Agri, its agricultural business division. This acquisition will give the company more control over how it manages the business, allowing it to further expand and develop its presence in this sector. Olam Group is a leading agribusiness group that is headquartered in Singapore. The company operates in various countries across the globe, including in Africa, India, and China.
It is also a public company listed on the Singapore Exchange and is one of the most prominent players in the global agricultural industry. It will also allow Olam Group to further diversify and expand its portfolio into different areas of agribusiness, such as livestock and food processing. This should help the company to remain competitive in an ever-expanding industry.
Stock Price
On Tuesday, Olam Group announced that it had divested its minority share in its subsidiary, Olam Agri. The stock opened at SG$1.6 and closed at the same, 1.9% lower than its previous closing price of SG$1.6. The divestment of its minority share in Olam Agri was part of Olam Group’s overall strategy to focus on its core business and strengthen its capital base.
The divestment of its minority stake in Olam Agri was a significant move in the company’s long-term strategy and is expected to further strengthen its financial position. The divestment of its minority share in Olam Agri is expected to have a positive impact on the company’s long-term prospects and will help to further strengthen its competitive position in the global market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Olam Group. More…
| Total Revenues | Net Income | Net Margin |
| 54.9k | 588.15 | 1.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Olam Group. More…
| Operations | Investing | Financing |
| 964.6 | 984.76 | -1.34k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Olam Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 31.95k | 23.87k | 2 |
Key Ratios Snapshot
Some of the financial key ratios for Olam Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.5% | 82.2% | 2.9% |
| FCF Margin | ROE | ROA |
| 0.3% | 13.2% | 3.1% |
Analysis
GoodWhale conducted an analysis of OLAM GROUP‘s wellbeing, which revealed that the company is strong in asset, dividend, and growth, and medium in profitability. According to the Star Chart, OLAM GROUP has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that it is likely to sustain future operations in times of crisis. Further classification of OLAM GROUP as a ‘gorilla’ type of company indicates that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given these metrics, it is likely that investors who are interested in companies with long-term viability and stability will be interested in OLAM GROUP’s stock. In particular, those who prioritize safety and security in their investments may find this company particularly attractive. More…
Peers
It has a strong presence in many countries and a wide range of products. The company is constantly innovating and expanding its operations. Its main competitors are HF Foods Group Inc, Bid Corp Ltd, and Calavo Growers Inc. All these companies are large and well-established in the industry. They have strong financial resources and a wide customer base. They are constantly innovating and expanding their operations. They are also trying to enter new markets.
– HF Foods Group Inc ($NASDAQ:HFFG)
HFF Foods Group Inc is a food company that focuses on providing healthy and affordable food options. The company has a market cap of 266.92M as of 2022 and a return on equity of 4.72%. The company’s products are available in a variety of grocery stores and online retailers.
– Bid Corp Ltd ($OTCPK:BPPPF)
Bid Corporation Limited is a foodservice company. The Company operates in four segments: Foodservice, Retail, On-Premise and Support Services. It offers a range of services, including food and beverage procurement, logistics, distribution, equipment rental and support services. The Company provides its services to customers in South Africa, the United Kingdom, Ireland, Poland, Australia, New Zealand, Japan, China, India, Vietnam, Zambia, Botswana, Namibia, Mozambique, Ghana, Nigeria and various other countries.
– Calavo Growers Inc ($NASDAQ:CVGW)
Calavo Growers Inc is a company that produces, markets, and distributes avocados, tomatoes, and other fresh produce products. As of 2022, the company has a market capitalization of 658.2 million dollars and a return on equity of -5.75%. The company has been in business since 1924 and is headquartered in California.
Summary
The Olam Group, a Singapore-based agribusiness and food company, recently announced that it has sold a minority stake in its subsidiary Olam Agri to Mitsubishi Corporation for an undisclosed amount. This strategic move is expected to strengthen the Olam Group’s balance sheet as well as improve its capital structure. Investing analysis suggests that the sale of a minority stake in Olam Agri could boost the Olam Group’s share price in the long-term due to increased liquidity and better access to capital. Moreover, a stronger balance sheet would enable the company to take advantage of potential investment opportunities.
The strengthened capital structure can also help reduce the risk of dilution for existing shareholders. Overall, investing in the Olam Group looks to be a wise decision at this juncture.
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