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Temasek, concert parties own 80% of Olam at close of offer

Temasek Holdings' offer to buy out Olam International closed on Friday, with the investment firm and its concert parties securing a little more than 80 per cent of the commodities giant. 

SINGAPORE: Temasek Holdings' offer to buy out Olam International closed on Friday, with the investment firm and its concert parties securing a little more than 80 per cent of the commodities giant, a regulatory filing with the Singapore Exchange showed.

Temasek’s unit, Breedens Investments, offered in March to buy all the outstanding shares in Olam that it and its concert parties did not already own at S$2.23 per share, representing an 11.8 per cent premium to the last traded price. That gave Olam a value of about S$5.3 billion.

At the close of offer at 5pm on Friday, Breedens and concert parties owned, controlled or have agreed to acquire a total of almost 1.96 billion shares, representing about 80.4 per cent of the total issued share capital of Olam and 71.9 per cent of the maximum potential share capital of the company, according to the filing.

Breedens and concert parties also owned, controlled or have agreed to acquire an aggregate of about 360.7 million warrants, representing 90.7 per cent of the total issued warrants of the company.

Breedens had previously said it intended to keep Olam -- one of the world’s biggest traders of coffee, rice and cashew nuts -- as a listed company.

Olam shares rose 1 cent on Friday to close at S$2.24 each, with more than 10 million shares traded.

Olam hit the headlines in November 2012 after it came under attack from US short seller Muddy Waters over its debt levels and allegations of dubious accounting practices. Its shares plunged by a fifth before Temasek emerged to buy more shares in the firm and also back a S$750 million bond sale.

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