Singapore Stock Market News

OLAM International Ltd. - The Japanese Connection

StockFanatic
Publish date: Mon, 31 Aug 2015, 01:48 PM
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We think the S$915mn new investment Mitsubishi Corp is making in Olam (along with the 8% stake from the founding family) substantially mitigates any lingering worries on funding. In addition, having the largest Japanese trading house as a strategic partner and the JV that is planned opens up substantial opportunities in the Japanese market (Mitsubishi's 'Living Essentials' division which complements Olam's business constitutes c.30% of the former's Net Income utilizing 18% of the group assets). Backed by Temasek (51.4%) and Mitsubishi (20%), Olam has substantial flexibility to pursue the growth opportunities it had moderated a couple of years ago, in our view.

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