Asian sugar giant invests $134.89m in Olam subsidiary
The two are looking for opportunities in sugar milling and refining in Indonesia.
Olam International Limited (Olam) and Mitr Phol Sugar Corporation (Mitr Phol), the world’s fourth largest and Asia’s largest sugar producer, entered a strategic partnership to capitalise on the attractive growth opportunities for sugar milling and refining in Indonesia.
According to a press release, Mitr Phol will invest $134.89m (US$100m) for a 50.0% stake in Olam’s wholly-owned subsidiary Far East Agri (Far East), which operates a sugar refinery in Indonesia, PT Dharmapala Usaha Sukses (PT DUS) in Cilacap, Central Java.
Olam will retain the remaining 50% stake in Far East.
Under the new agreement, Far East will explore the development of a green-field sugar milling facility in East Java. Upon completion in 2020, the sugar mill is expected to source 1.2 million metric tonnes of cane from farmers.
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