Olam was established in 1989 by the Kewalram Chanrai Group, one of the oldest international companies in Africa and Asia with more than 150 years of trading history. Over the past 25 years, Olam has developed into a global agri-business headquartered in Singapore with global market leadership positions in many of its businesses. Our success has enabled us to attract co-sponsors, strategic and long term investors, as well as world-class institutional investors, providing stability and business and financial strength to the Company.
Temasek Holdings, an Asia investment company headquartered in Singapore, is the majority shareholder of Olam. It owns 1,425,141,217 shares through Breedens Investments and Aranda Investments, representing 51.4% of the total issued share capital of Olam.
Mitsubishi Corporation (MC Group), a global integrated business enterprise headquartered in Japan, is the second largest shareholder of Olam and strategic investor holding 554,689,829 shares or 20.0% of total issued share capital of Olam. The MC Group develops and operates businesses across a variety of sectors with over 200 officers and subsidiaries in 90 countries worldwide. Its strategic investment in Olam sets the platform for a long term strategic partnership with Olam, with several mutually beneficial potential collaboration opportunities, including the setting up of a joint venture in Japan to market specific products of Olam that can leverage its strong distribution and retail presence and Olam’s deep origination expertise in those products.
The Olam key management team, represented by its executive committee, has a significant shareholding in the company approximating 6.4% of the total issued share capital, which greatly aligns shareholder and management interests in creating value. These shares include 111,646,477 shares representing 4.0% of the total issued share capital of Olam held by Group Managing Director and Chief Executive Officer, Sunny George Verghese.
As of 30 September 2015, Olam’s total number of issued shares is 2,773,449,142 (excluding treasury shares of 52,196,000). The free float owned by public shareholders accounts for approximately 22.2% of the total issued share capital.
As of end-October 2015, about 11.4% of total issued share capital (excluding treasury shares) was held by institutional investors.
Distribution of Institutional Shareholders by Country/Region
|Europe (excluding UK)||9.1%|
|Asia (excluding Singapore)||2.8%|
Distribution of Institutional Shareholders by Investment Style
Source: NASDAQ. The distribution of institutional shareholders is based on total issued shares not excluding treasury shares.
On 26 October 2004, we implemented the Olam International Limited Employee Share Subscription Scheme 2004 (ESSS), comprising 73,913,0442 shares of S$0.23 each which were fully allotted and issued by the Company.
The Olam Employee Share Option Scheme (the “ESOS 2005”) was approved by shareholders at an Extraordinary General Meeting held on 4 January 2005. The ESOS 2005 rules were amended on 29 October 2008 at the Extraordinary General Meeting of the Company. The ESOS 2005 was terminated and expired on 3 January 2015 as a Share Grant Plan was adopted at the 20th Annual General Meeting held on 30 October 2014. However, the terms of the ESOS 2005 will continue to apply to the options granted under the scheme. As of 30 June 2015, the Company has 75,802,000 outstanding options issued to employees and Directors.
The Share Grant Plan gives Participants an opportunity to have a personal equity interest in the Company and will help to achieve the following positive objectives: motivate participants to optimise their performance standards and efficiency; maintain a high level of contribution to Olam and strive to deliver long-term shareholder value; align the interests of employees with the interests of the shareholders of the Company; retain key employees and executive directors of Olam whose contributions are key to its long-term growth and profitability; instil loyalty to, and a stronger identification by employees with the long-term prosperity of the Company; and attract potential employees with relevant skills to contribute to the Group and to create value for the shareholders of the Company. Details on the Plan are given in the Letter to Shareholders dated 15 October 2014. On 7 April 2015, the Company awarded 11,817,500 shares which will vest in April 2018. The actual number of shares to be delivered to the awards granted will range from 0% to 192.5% of the base award and is contingent on the achievement of pre-determined targets set out in the three-year performance period and other terms and conditions being met.