Global food and agribusiness company Olam Group is considering selling up to an additional 10% of its stake in Olam Agri Holdings, according to a circular filed before an extraordinary general meeting.

The proposal followed an agreement by Olam Group in March to sell a 35.4% stake in Olam Agri to Saudi Agricultural and Livestock Investment Co (SALIC), which is wholly owned by the Public Investment Fund of the Kingdom of Saudi Arabia (KSA), the company’s 5 June circular said.

SALIC said it expected the US$1.24bn transaction to be completed this year, subject to approval from the relevant international authorities.

The latest filing said Olam Group was seeking approval for the proposed additional stake sale to SALIC and/or other potential investors.

If both the proposed stake sale and the additional sale progressed, the proceeds could total US$1.59bn, Olam Group said, but it noted there was no certainty the additional stake sale would go ahead.

Olam Group said it planned to continue to hold the majority of Olam Agri.

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

The partnership with Olam Agri would help progress SALIC’s aim to deliver food security in Saudi Arabia, SALIC said.

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