Olam sells stake in African port operator Arise P&L

Singapore-based Olam Group has agreed to sell its remaining 32.4% stake in Arise Ports and Logistics (P&L), an operator of port terminals in Africa, for US$175m. The deal marks a further step in the group’s broader restructuring, following the announcement earlier this year that the Saudi Agricultural and Livestock Investment Company (SALIC) will acquire a majority stake in Olam’s agribusiness unit, Olam Agri.

The Arise group – comprising Arise P&L, Arise Integrated Industrial Platforms (IIP), and Arise Infrastructure Services (IS) – was formed out of the restructuring of the Gabon Special Economic Zone, an initiative launched in 2010 as a public-private partnership between Olam and the Gabonese government. The aim was to create specialised verticals focused on ports and logistics, industrial platforms, and infrastructure services across Africa. Olam has already fully exited Arise IIP and Arise IS, but has retained its shareholding in Arise P&L.

Arise P&L manages two ports in Gabon – one focused on minerals and the other on general cargo – as well as a multipurpose bulk terminal in San Pedro, Côte d'Ivoire, handling mining and agricultural commodities. The company reported a loss for the 2024 financial year, which was partly attributed to reduced economic activity in its operating geographies. Olam is selling its remaining stake to Equitane, a Dubai-based investment company established by the founding team of the Arise Group.

The sale aligns with Olam’s broader strategy to simplify its operations. From starting out in 1989 by trading Nigerian cashew nuts, the company has since evolved into a global agriculture and food business. In 2020, it reorganised into three distinct divisions:

• Olam Agri, which is in the process of being acquired by SALIC, operates in countries including Nigeria, Ghana, Côte d’Ivoire, Mozambique, and Senegal. It specialises in food, feed, and fibre, with notable operations in wheat milling, flour production, animal feed, edible oils, rice, cotton, sesame, rubber, and timber.
  
  
• Olam Food Ingredients (OFI), a global supplier of food ingredients such as cocoa, coffee, and cashew nuts, with sourcing and processing operations across several African countries.
  
  
• The rest of Olam Group includes the Arise P&L, investments in early-stage ventures, a consumer-packaged foods business in West Africa under the Caraway brand – which produces biscuits, confectionery, noodles and tomato-based products – and a palm oil joint venture with the Republic of Gabon.

Earlier this month, Olam said it would invest an additional US$500m into OFI to unlock the unit’s full potential, and progressively divest from assets held under the Remaining Olam Group portfolio. Proceeds from those transactions will be returned to shareholders via special dividends.

With the final exit from Arise P&L and a US$500 million reinvestment into its high-growth OFI unit, Olam is signaling a sharpened focus on profitability and core operations. Investors may view the restructuring-and the planned return of proceeds via special dividends-as a positive step toward unlocking shareholder value.

 

References

‘Gabon Special Economic Zone: Business made easy’, Africa Outlook, 26 February 2019

‘Re-organisation of Gabon Special Economic Zone’, Olam Group, 28 January 2020

‘Africa’s trusted trade partner’, Arise P&L, 02 April 2021

‘Olam International announces signing of definitive agreements to divest remaining equity stakes in ARISE IIP and ARISE IS’, Olam Group, 11 February 2022

‘TIPSP secures 90 million euro financing package’, Hellenic Shipping News Worldwide, 21 July 2022 

‘Transaction marks RMB’s first project finance facility in Côte d’Ivoire’, RMB, 27 July 2022

‘Standard Bank finances new port terminal at San Pedro, Côte d'Ivoire’, Standard Bank, 28 July 2022

'Proposed sale of Olam Group’s remaining 64.57% stake in Olam Agri to SALIC', Olam Group, 24 February 2025

‘Update on Olam Group’s Re-organisation plan’, Olam Group, 14 April 2025

‘Olam Group disposes its remaining 32.4% stake in ARISE P&L’, Olam Group, 17 April 2025

‘Gagan Gupta’, Wikipedia, Accessed 20 April 2025

‘Gabon’, Arise P&L, Accessed 20 April 2025

‘Olam Group Limited Annual Report 2024’, Olam Group, Accessed 19 April 2025