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Global food and agribusiness company Olam Group has completed the US$1.24bn sale of a substantial minority stake in Olam Agri Holdings to Saudi Agricultural and Livestock Investment Co (SALIC).

Completed on 23 December, the transaction – first announced on 25 March last year – values Olam Agri at an equity valuation of US$3.5bn.

Olam Agri specialises in the processing and trading of animal feed, grains, oilseeds, rice and other products and is active in more than 30 countries.

Following the transaction, Olam Group said it would continue to hold a majority stake of 64.57% in Olam Agri.

In addition, Olam Group said SALIC and Olam Agri had entered into a strategic supply and cooperation agreement, which would accelerate Olam Agri’s access into Middle East markets.

“This [the sale] marks a pivotal moment for Olam Agri as our strategic partnership with SALIC - whose interests align with Olam Agri’s focus on meeting the increasing demand for food, feed and fibre across high-growth end consumption markets - will accelerate Olam Agri’s growth into new markets,Olam Group’s co-founder and CEO Sunny Verghese said.

SALIC, which is wholly owned by the Public Investment Fund of the Kingdom of Saudi Arabia (KSA), said the partnership with Olam Agri would help progress its aim to deliver food security in Saudi Arabia.

Established in 2009, SALIC aims to achieve food security for the Kingdom of Saudi Arabia through domestic and international investments.