Olam (indicative timetable for right issue)

Olam: provides indicative timetable for the rights issue. Books closure date – early Jan 2013 Trading of “nil-paid” rights – early to mid Jan 2013 Issuance of bonds and warrants – late Jan / early Feb 2013 Commencement of trading of bonds – late Jan/ early Feb 2013 Recall, Olam earlier proposed an underwritten rights issue of US$750m in principal amount of 6.75% bonds due 2018 with free detachable warrants, on the basis of 313 bonds of principal amt of US$1 each with 162 warrants for every 1000 existing Olam shares. Olam says an EGM / shareholders’ approval is not required for the rights issue. However, an EGM will be convened for the purpose of approving the sub-underwriting commission payable by the Joint Bookrunners to the subunderwriter. The co has agreed to pay an underwriting commission of 2% of the principal amount of the bonds to the Joint Bookrunners. Out of this, the Joint Bookrunners have agreed to pay to the subunderwriter, Temasek, a subunderwriting commission of 0.85% of the principal amount of the bonds. Separately, Michael Dee, in an interview with Bloomberg, says he completely rejects the Enron comparison made by Muddy Waters. His comments come after his contribution to the Business Times titled “A 10-point plan for Olam” on how Olam needs to reduce debt, "take a breather from rapid expansion" and be more transparent. Olam shares continue to be volatile, swinging btwn gains and losses this morning over the 1.445 – 1.49 trading range. The 5-yr USD bonds due Sep 2017 are unchanged at 88 cts on the dollar, according to BNP Paribas pricing.