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 26 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.
A key objective in the past 2 years has been to realign our shareholder base by attracting shareholders that better reflect the long-term tenor of our strategy. Temasek Holdings, an Asia investment company headquartered in Singapore, became the majority shareholder of Olam after the completion of a voluntary general offer in May 2014. It owns 1,425,141,217 shares through Breedens Investments and Aranda Investments, representing 52.1% of the total issued share capital of Olam.
Mitsubishi Corporation (MC Group), a global integrated business enterprise headquartered in Japan, took a 20.0% equity stake in the Company and became a strategic investor and the second largest shareholder of Olam in September 2015. It holds 554,689,829 shares or 20.3% of issued capital and has two representatives on the Board. The MC Group has more than 200 officers and develops its business in collaboration with over 600 group companies in approximately 90 countries around the world. 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 4.1% of the total issued share capital of Olam held by Co-Founder and Group CEO, Sunny George Verghese.
As of 30 September 2016, Olam’s total number of issued shares is 2,735,543,671 (excluding treasury shares of 92,118,300). The free float owned by public shareholders accounts for approximately 16.3% of the total issued share capital.
As of end-Nov 2016, about 10.5% of total issued share capital (excluding treasury shares) was held by institutional investors.
Distribution of Institutional Shareholders by Country/Region
|Europe (excluding UK)||6.1%|
|Asia (excluding Singapore)||3.6%|
Distribution of Institutional Shareholders by Investment Style
Source: NASDAQ. The distribution of institutional shareholders is based on total issued shares not excluding treasury shares.
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 31 December 2015, the Company has 74,417,000 outstanding options issued to employees and Directors.
On 30 October 2014, the Company had adopted the new Share Grant Plan, a share-based incentive plan which involves the award of fully-paid shares, when and after pre-determined performance or service conditions are accomplished. Any performance targets set under the OSGP are intended to be based on longer-term corporate objectives covering market competitiveness, quality of returns, business growth and productivity growth. The actual number of shares to be delivered pursuant to the award 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. The number of contingent shares granted but not released as of 31 December 2015 was 11,817,500.