Olam founder bumps up stake for first time since 2012

Singapore-listed Olam International said its founder raised stake in the commodities trader for the first times in five years, restoring Kewalram Singapore's position as a substantial shareholder in Olam.

Olam International Q1 net profit surges more than 200 percent
A man walks past a logo of Olam International Limited at its office in Singapore November 29, 2012 Reuters

Singapore-listed Olam International said its founder raised stake in the commodities trader for the first times in five years, restoring Kewalram Singapore's position as a substantial shareholder in Olam.

Kewalram Singapore raised stake in the firm to 7.2 percent, from 4.4 percent earlier, after exercising its warrants to acquire 90.3 million voting shares, the company said in a regulatory filing.

Due to the warrant conversion, Temasek Holdings' stake in Olam has been reduced from 56.48 percent to 54.83 percent, while Mitsubishi Corp's stake slipped from 18.38 percent to 17.82 percent.

Both Temasek and Mitsubishi are the top two shareholders of Olam.

Olam, one of the world's leading traders in commodities such as coffee, cocoa and rice, supplies both raw and processed agricultural commodities to its customers in 70 countries.

Olam's accounting practices were attacked in 2012 by short seller Muddy Waters before it was rescued by Singapore state investor Temasek.

The investment comes at a time when fellow commodity trader Noble Group is struggling to shore finances after multiple downgrades amidst concerns over its accounting practices that came under attack in 2015.

Shares in the company were unchanged at S$2.20 on the Singapore Exchange.

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