Singapore commodities firm Olam International Ltd has agreed to sell a 25 percent stake in its packaged foods operations to Japanese instant noodle maker Sanyo Foods for $187.5 million, the companies said in a joint statement.
The deal is aimed at tapping market potential in sub-Saharan Africa and is subject to a definitive agreement and closing conditions, the pair said in a filing to the Singapore stock exchange on Monday. It's expected to be completed by September-December 2014, the second quarter of Olam's fiscal 2015.
An existing instant noodle joint venture between Olam and privately owned Sanyo will be folded into the new business, which will house all of Olam's packaged foods operations.
In the statement, Sanyo Foods' president Junichiro Ida said the deal strengthens what he call a "strategic alliance" with Olam, investing beyond the noodle business into a range of packaged food categories.
