Singapore-based agricultural commodity trader Olam Group, in line with its re-organization plan, has entered into definitive agreement with Equitane DMCC to sell its remaining 32.4% stake in Arise Ports and Logistics ( Arise P&L ) for a price consideration of US$175 million.

The price represents an approximately 7% premium over the carrying value of the investment in the company’s books as of end-2024.

Equitane, previously known as the Africa Transformation and Industrialization Fund, is a long-term investment platform headquartered in Dubai, UAE, dedicated to creating sustainable and innovative solutions across key sectors in Africa.

The platform was established in 2021 by the founding team of the Arise Group, a pan-African developer and operator of world-class industrial parks known as Arise Integrated Industrial Platforms ( Arise IIP ), as well as logistics providers Arise Infrastructure Services ( Arise IS ) and Arise P&L.

Olam, as part of its re-organization plan, intends to responsibly divest and monetize the group’s remaining assets and businesses over time and progressively distribute the net proceeds to its shareholders via special dividends. 

The commodity trader in 2022 sold its remaining stakes in Arise IIP and Arise IS to Equitane.

The sale is not expected to have a material impact on the net tangible assets per share or earnings per share of Olam for the current financial year.