SINGAPORE — Olam International Limited announced on Jan. 2 that it has divested its 50% stake in Lansing Olam Canada by way of a share repurchase arrangement for a cash consideration of $5.4 million.
Lansing Olam Canada is a jointly controlled entity of the company with the balance 50% held by its joint venture partner Lansing Trade Group LLC. The joint venture was first announced in June 2012.
“Our exit from Canada will allow us to concentrate our resources on the rest of our grains businesses in line with the company’s refreshed strategy,” said KC Suresh, president and global head of Olam’s grains business.
Following the sale, Lansing Olam Canada ceases to be a jointly controlled entity of Olam.
The transaction is not expected to have a material financial impact on Olam for the financial year ending June 30, 2014.