(Logo from the group’s website)

KUALA LUMPUR: IOI Corporation Bhd (IOI) had today entered into a definitive sale and purchase agreement with Bunge Limited (Bunge) to sell a 70 per cent controlling stake in IOI Loders Croklaan (Loders) and its related businesses for a total consideration of £297 million plus US$595 million, subject to certain adjustments to be determined at the closing of the transaction.

This values the entire Loders and its related businesses at £425 million plus US$850 million, net of external debt and cash and including normalised working capital.

The transaction is expected to close within the next 12 months, subject to regulatory and IOI’s shareholders approvals.

After the transaction, Loders will, in combination with Bunge, be part of a global agri-food company with differentiated and comprehensive product offerings based on both tropical and seed oils, and world-class formulation and application capabilities.

“After the transaction, IOI will still play an important role in Loders given our expertise in palm oil sourcing and our business experience in the fast-growing Asia Pacific Region,” said IOI chief executive officer Datuk Lee Yeow Chor in a statement.

“IOI will have two representatives on Loders’ five-member Board of Directors and our representatives will also be involved in key management decisions taken by Loders.”

He added that IOI will continue to be a major supplier of palm oil and palm products to Loders after the transaction.

“In this respect, IOI will maintain our strong sustainability commitments as spelled out in IOI Group’s Sustainable Palm Oil Policy,” continue Lee.

Going forward, IOI intends to be a vital partner to Bunge in supporting Loders’ growth and Bunge’s corporate objective to grow their value-added portfolio in the edible oils business.

The expected significant growth in Loders in the future will support IOI’s business focus of being a leading integrated and sustainable palm oil player with global presence in both specialty fats and oleochemical segments.

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