SINGAPORE — Olam International Limited on Sept. 24 acknowledged that it and Louis Dreyfus, a global commodity trading house, are considering a merger. This announcement followed a Reuters news wire report from Sept. 23 citing a French newspaper, Les Echos.
Olam said it wishes to inform shareholders that it had engaged in preliminary confidential discussions with Louis Dreyfus Commodities in relation to a possible business collaboration which may take the form of, among others, a merger. Olam to emphasized that discussions are still preliminary and that no definitive agreements have been entered into as Sept. 24 and the possible collaboration may or may not proceed.
The company said it constantly reviews corporate development opportunities, which are in line with its corporate growth strategy. Some of these are in the nature of acquisitions and joint ventures. The company is currently in discussions with various parties on such opportunities. These opportunities are still at various stages and there is no certainty that any of them will materialize.
Olam said it will keep the shareholders informed if there is any material development by making the appropriate announcement in compliance with the listing rules of the Singapore Exchange Securities Trading Limited.
The company advised shareholders and potential investors to refrain from taking any action in respect of their shares in the company which may be prejudicial to their interests and to exercise caution when dealing in the shares of the company.