Olam to divest remainder of ARISE IIP and ARISE IS to ATIF for US$189M

U.S. one-dollar currency notes; taken September 2018.U.S. one dollar bills.

Olam International said Friday it entered deals to sell its remaining equity stakes in ARISE Integrated Industrial Platforms (ARISE IIP) and ARISE Infrastructure Services (ARISE IS), part of the ARISE
group, for US$189 million.

The buyer is Africa Transformation and Industrialization Fund (ATIF), a management led buy-out group, incorporated in Abu Dhabi and founded by ARISE Group’s management team to invest in assets supporting Africa’s industrialization, decarbonization and economic development, Olam said in a filing to SGX. 

The ARISE Group is a pan-African infrastructure and logistics group operating as ARISE IIP, ARISE IS and ARISE Ports & Logistics, the filing said. 

Under the deal, Olam fully exit ARISE IIP and ARISE IS, but will continue to hold its 32.4 percent stake in ARISE P&L, the agribusiness player said.

Olam said the deal is part of its strategic plan, announced in 2020, and marks a “significant step” in extracting full value from its African infrastructure and logistics projects. 

Olam said the pricing is in line with the carrying value of the investments on its books.