Rep. of Gabon increases stake in Olam palm, rubber JVs

Source：Olam International Release Date：2014-03-31 210

Food & Beverage

Gabon will invest a further US$56.8m toward equity

OLAM International Limited, a leading agri-business operating across the value chain in 65 countries, said that the Republic of Gabon will invest US$56.8 million towards equity and increase its stakes in the palm and rubber joint ventures.

Olam Palm Gabon (OPG) and Olam Rubber Gabon (ORG) are the joint ventures between parties. Olam holds 70% and 80% equity stake respectively, and Gabon, the rest. In the new transaction, Olam will own 60% equity in both JVs, and the remainder to Gabon. The increase in stake will help Gabon generate local employment in rural areas, attract other industry participants, and promote its young palm and rubber industries. Whilst for Olam, this strategy will unlock value by seeking strategic partners to co-share investments in capital-intensive and long-gestation projects. This is expected to release cash of US$30.0 million and will result in a gain of $14.5 million that will be credited to its capital reserves.News