Singapore-based agri-business giant Olam Group announced on April 14 that it will channel US$500 million (S$657 million) into expanding its food ingredients division while progressively divesting its remaining operations and assets. This strategic pivot is aimed at sharpening the company’s focus on high-growth segments and ensuring financial sustainability.

Olam, which lists Singapore’s investment firm Temasek as its largest shareholder, also revealed plans to allocate US$2 billion towards settling debts tied to its residual businesses. The goal is to make these units self-sufficient in preparation for their eventual sale. The company emphasized that this decision reflects a broader strategy to bolster its financial position and enhance the resilience of its business groups amid a challenging macroeconomic environment.

Global commodity markets, including those for coffee and cocoa, have seen sharp fluctuations due to worldwide economic uncertainty and geopolitical tensions—particularly those spurred by tariff measures under the Trump administration. “Agricultural commodities are being affected by tariffs, especially in the context of US-China relations,” said Olam’s co-founder and group CEO, Sunny Verghese, during a media briefing. “However, because both production and consumption are spread across multiple nations, the overall impact remains minimal, as was the case during Trump’s first term.”

To fund this restructuring, Olam will draw from the US$2.58 billion it expects to receive from the sale of its stake in Olam Agri to Saudi Arabia’s agricultural investment firm Salic, alongside proceeds from future asset divestments.

The group will use part of the fresh equity investment in its food ingredients unit to explore listing opportunities in both Singapore and Europe. The timeline for such a move will depend on the performance of Olam Food Ingredients and prevailing market conditions, including geopolitical developments, according to Mr. Verghese.

In addition to restructuring, Olam intends to restart its share buyback program and gradually return value to shareholders through special dividends funded by asset sales. Notably, the company had previously postponed a planned London IPO for its food ingredients business in 2022 due to market instability amid the Ukraine conflict.

Olam’s remaining assets include several non-core and emerging ventures such as Nupo Ventures (a start-up incubator), technology firm Mindsprint, and Olam Global Holdco, which oversees holdings like Olam Palm Gabon and its packaged foods division.

Following the announcement, Olam’s shares jumped 7% to 91 cents by midday—outperforming the broader market’s 1.5% rise and reflecting investor optimism about the group's refocused direction.