Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>After selling a 35.43% stake in Olam Agri to Saudi Arabia’s Public Investment Fund last month, <a href="https://www.smartkarma.com/entities/olam-group" target="_blank" data-smartkarma-citation="entities:765:1" rel="noopener">Olam Group (OLG SP)</a> intends to dual list the company in Singapore and Saudi Arabia. </li>
<li>The stake sale implied a US$3.5bn value for the agricultural arm, or ~50% of OGL's current market cap based on its remaining position in Olam Agri. </li>
<li>Olam Agri may raise up to US$1bn via the listing. A separate London listing of OGL's food ingredient business is expected to occur subsequent to Olam Agri's listing.</li>
</ul>


After selling a 35.43% stake in Olam Agri to Saudi Arabia’s Public Investment Fund last month, Olam Group (OLG SP) intends to dual list the company in Singapore and Saudi Arabia. 
The stake sale implied a US$3.5bn value for the agricultural arm, or ~50% of OGL's current market cap based on its remaining position in Olam Agri. 
Olam Agri may raise up to US$1bn via the listing. A separate London listing of OGL's food ingredient business is expected to occur subsequent to Olam Agri's listing.


Petrodollars Fan Olam's Agri Listing In Singapore And Saudi Arabia

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<ul>
<li>What is the common theme for beggar thy neighbor policies and higher inflation rates as evidenced by surging wheat prices, higher diesel prices, and infant formula shortages?</li>
<li>These factors are likely to continue to favor value stocks which have outperformed the growth stocks in the past six month globally, including in South Korea.</li>
<li>Value-Oriented sectors including financials, telecom, F&amp;B, and oil refineries have been outperforming the growth sectors in Korea in the past six months and we believe this trend could continue. </li>
</ul>


What is the common theme for beggar thy neighbor policies and higher inflation rates as evidenced by surging wheat prices, higher diesel prices, and infant formula shortages?
These factors are likely to continue to favor value stocks which have outperformed the growth stocks in the past six month globally, including in South Korea.
Value-Oriented sectors including financials, telecom, F&amp;B, and oil refineries have been outperforming the growth sectors in Korea in the past six months and we believe this trend could continue. 


India Bans Wheat Exports; Baby Formula & Diesel Shortage in US: Repeat of Beggar Thy Neighbor Policy

<ul>
<li>Ten days after <a href="https://www.smartkarma.com/entities/olam-group" target="_blank" data-smartkarma-citation="entities:765:1" rel="noopener">Olam Group (OLG SP)</a>'s restructuring became effective, Saudi-backed SALIC, entered into an SPA to acquire 35.4% of Olam Agri (OGA).</li>
<li>The proposed US$1.24bn investment implied an equity value of US3.5bn for the bulk agricultural commodity player.</li>
<li>The OFI unit, which focuses on food ingredients (cocoa, coffee, nuts, and spices), is still seeking a listing in London. OGA is expected to go public six months after OFI. </li>
</ul>


Ten days after Olam Group (OLG SP)'s restructuring became effective, Saudi-backed SALIC, entered into an SPA to acquire 35.4% of Olam Agri (OGA).
The proposed US$1.24bn investment implied an equity value of US3.5bn for the bulk agricultural commodity player.
The OFI unit, which focuses on food ingredients (cocoa, coffee, nuts, and spices), is still seeking a listing in London. OGA is expected to go public six months after OFI. 


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>Olam Group set to replace <a href="https://www.smartkarma.com/entities/olam-international-ltd" target="_blank" data-smartkarma-citation="entities:765:1" rel="noopener">Olam International (OLAM SP)</a> as the listed company entity on 16 March. It consists of Olam Food Ingredients (ofi), Olam Agri and Olam International (OIL).</li>
<li>The complicated restructuring exercise which was announced in January 2020 is driven by the Board’s intent to unlock long-term shareholder value. </li>
<li>Our SoTP valuation is S$2.36 per share, which is a 34% upside to the last trading price of S$1.76 per share (9 March prior to the suspension of the shares).</li>
</ul>


Olam Group set to replace Olam International (OLAM SP) as the listed company entity on 16 March. It consists of Olam Food Ingredients (ofi), Olam Agri and Olam International (OIL).
The complicated restructuring exercise which was announced in January 2020 is driven by the Board’s intent to unlock long-term shareholder value. 
Our SoTP valuation is S$2.36 per share, which is a 34% upside to the last trading price of S$1.76 per share (9 March prior to the suspension of the shares).


Olam Group: Restructuring to Unlock Value

<ul>
<li>The High Court of Singapore has now sanctioned the proposed restructuring of <a href="https://www.smartkarma.com/entities/olam-international-ltd" target="_blank" data-smartkarma-citation="entities:765:1" rel="noopener">Olam International (OLAM SP)</a> and the proposed listing of OFI Group.</li>
<li>Entitlement in respect of the Scheme will close on the 11 March. The last day of trading is the 9 March. The listing of OFI is expected in the 2Q22.</li>
<li>With many grain/agri prices touching record highs amid war in Ukraine, boasting an upstream supply is not a bad thing. But the timing of OFI's listing could work both ways.</li>
</ul>


The High Court of Singapore has now sanctioned the proposed restructuring of Olam International (OLAM SP) and the proposed listing of OFI Group.
Entitlement in respect of the Scheme will close on the 11 March. The last day of trading is the 9 March. The listing of OFI is expected in the 2Q22.
With many grain/agri prices touching record highs amid war in Ukraine, boasting an upstream supply is not a bad thing. But the timing of OFI's listing could work both ways.


Olam's Demerger: The Sum Is Probably Greater Than The Whole

United States

Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities and products. The Company processes oilseeds, corn, milo, oats, barley, peanuts, and wheat. Archer-Daniels-Midland also processes produce products which have primarily two end uses including food or feed ingredients.

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Archer Daniels Midland Co (ADM US)

Petrodollars Fan Olam's Agri Listing In Singapore And Saudi Arabia

Investors may be inclined to hold onto Olam shares for the Olam Agri in-specie and then exit. Or participate directly in the IPO I'd be picking up...

David Blennerhassett

India Bans Wheat Exports; Baby Formula & Diesel Shortage in US: Repeat of Beggar Thy Neighbor Policy

What is the common theme for beggar thy neighbor policies and higher inflation rates as evidenced by surging wheat prices, higher diesel prices,...

Douglas Kim

Olam Teams Up With Saudi Arabia's SALIC

SALIC was clearly waiting in the wings until the demerger was completed. Trading a couple of spreads below where it traded heading into the...

David Blennerhassett

Olam Group: Restructuring to Unlock Value

Olam Group set to replace Olam International as the listed company entity on 16 March. Our SoTP valuation is S$2.36 per share, which is a 34%...

Arun George

Olam's Demerger: The Sum Is Probably Greater Than The Whole

With many grain/agri prices touching record highs amid war in Ukraine, having an upstream supply is not a bad thing. But the timing of OFI's...

David Blennerhassett

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