Shares of Singapore’s commodity trader Olam International rose as much as 2.8%, a day after it unveiled a partnership with Russian Dairy Company LCC in the dairy and grains business, reported Reuters.
By 10:09 a.m., Olam shares were up 1.6% at $2.57 with more than 6.2 million shares trade compared with average daily volume of 12.1 million traded over the last five sessions.
By 10:09 a.m., Olam shares were up 1.6% at $2.57 with more than 6.2 million shares trade compared with average daily volume of 12.1 million traded over the last five sessions.
Olam was the top gainer on the main Straits Times Index, which was down 0.3%.
In a joint statement on Monday, Olam said it will invest up to US$75 million ($94 million) in exchange for a 75% stake in RUSMOLCO to tap the large and growing demand for dairy and dairy-based products.
“We believe this partnership will strengthen its food stables and packaged foods segment, helping it to secure long-term supply while leveraging RUSMOLCO’s customer network,” CIMB Research said in a note.
Olam said up to US$320 million of the US$400 million capital spending will be funded by RUSMOLCO along with some support from the Russian government. Olam expects no additional equity call on the investment.
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