According to Maybank Kim Eng, investment in upstream and supply chain assets play an important role in securing and growing trade flow.
Over the past few years Olam invested heavily in various upstream plantation assets as well as in logistics and storage facilities to secure the sourcing and transportation of the agri-commodities.
Here's more:
Since 2005, Olam has delivered an average of 26% annual volume growth as capex increased by 59% annually over the same period. In the next three years, we expect a broad-based slowdown in volume growth as capex is being scaled back.
Which segment to be more impacted? The four business segments within the group are: Edible nuts, spices & beans; Confectionery & Beverage Ingredients; Staples & Packaged Food; and Industrial Raw Materials.
We expect relatively strong volume growth in certain edible nuts (such as cashew, almond, peanut) and grains (under Staples & Packaged Food segment). Coffee and Cocoa (Confectionery & Beverage Ingredients segment) are also what Olam wants to invest and grow but we think medium-term outlook for these two commodities could be difficult (see sector outlook session for more details).
Blumont - SUBSCRIPTION OF UP TO 60,057,034 NEW SHARES CONSTITUTING APPROXIMATELY 14.61% OF THE EXISTING ISSUED SHARE CAPITAL OF COKAL LIMITED (THE “SUBSCRIPTION”) – COMPLETION OF THE FIFTH AND FINAL TRANCHE
Unless otherwise defined, all terms used in this announcement shall bear the same meanings ascribed to them in the announcement by the Company dated 8 July 2013 in relation to the Subscription (the “Announcement”).
Further to the Announcement, the Board of Directors of the Company is pleased to announce that the Company has on today completed the fifth and final tranche of the Subscription (the “Tranche 5 Subscription”), pursuant to which 3,182,034 new ordinary shares in Cokal Limited
(“CKA”) have been issued and allotted to the Company.
Following completion of the Tranche 5 Subscription, the Company holds an aggregate of 60,057,034 ordinary shares in CKA, representing approximately 12.75% of the total issued share capital of CKA.
BY ORDER OF THE BOARD
BLUMONT GROUP LTD.
James Hong Gee Ho
Executive Director
20 November 2013
NextInsight
a hub for serious investors
Closing bell 0.95