Temasek’s Olam offer turns unconditional, deadline extended to May 23

Published: 10:42 PM, April 24, 2014

SINGAPORE — Investment firm Temasek Holdings’ offer that values Olam International at S$5.3 billion has turned unconditional and the deadline for acceptances has been extended by two weeks to May 23, according to a regulatory filing by the commodities giant on Thursday.

Temasek’s unit, Breedens Investments, offered earlier this month 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.

As of 5pm on Thursday, Breedens and concert parties owned, controlled or have agreed to acquire a total of 1.37 billion shares, representing about 57.4 per cent of the total issued share capital of Olam and 50.4 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 235.3 million warrants, representing about 59.1 per cent of the total issued warrants of the company, the filing showed.

Breedens had said it intended to keep Olam as a listed company but will reassess its position if the minimum public float requirements are not met at the close of the offer.

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 questionable accounting practices. Its shares plunged by a fifth before Temasek emerged to buy more shares in the firm and back a S$750 million bond sale.