SGX Filings

“Everyone is entitled to their own opinions, but they are not entitled to their own facts”

Senator Daniel Patrick Moynihan (1927-2003)

The Muddy Waters report on Olam was published on the afternoon of Tuesday 27th November in Singapore. We refute the report’s allegations which are false and misleading. Our rebuttal to the 133 page report demonstrates the lack of substance in the claims. Our message to Carson Block (“CB”) and Muddy Waters (“MW”) is therefore clear – this time the mud won’t stick.

We believe that the report’s assertions are motivated to distract and create panic amongst our continuing shareholders, bond holders and creditors, to enable Carson Block and his associates to benefit from their short positions in Olam securities – a strategy of shouting fire in a crowded room.

We will continue to vigorously defend the reputation of the company.  We intend to pursue our rights to take appropriate action and claim damages for the unfounded allegations.

We wish to provide here our response to the major allegations by MW and the conclusions in their report.

In summary:

• SOLVENCY: Olam faces no risk of insolvency. We have proactively planned for an appropriate capital structure and raised the requisite equity and debt to meet our investment plans. We have sufficient liquidity to pursue our current business as well as future investment plans.
• ACCOUNTING RELATED ASSERTIONS: Our financial statements and accounting policies strictly follow and adhere to the Singapore Financial Reporting Standards (“SFRS”). Gains generated by accounting for negative goodwill in certain acquisitions are treated as ‘exceptional’ which are one-off in nature and are excluded when reporting the core operational profits of the company
• BUSINESS MODEL: Our differentiated strategy is working, is yielding the intended results, and has helped us build leadership positions in many of our businesses. Therefore we intend to stay the course.
• ACQUISITIONS AND CAPEX: Both organic Capex and M&A plans are an outcome of a conscious and deliberate strategy which has been well articulated and constantly refreshed. We have a proven track record of unlocking value through acquisitions and pursuing profitable organic growth.

For full report, please click on the pdf file on the top right.