Olam

Olam: Has acquired 100% of Northern Coffee Corp, the largest coffee estate in Zambia for approx US$6.15m. A further US$40m will be committed as capex and pre-operative expenditure to develop 2k ha of Arabica coffee plantation over the nxt 5 yrs. The estate is expected to yield approx 4.5k MT of Arabica coffee beans by FY2021 at steady-state. The first 300 ha are expected to be planted in FY2013. Co currently trades at P/E 13.9x