Olam

Olam: update to the renounceable rights issue of US$750m in principal amount of 6.75% bonds due 2018 in denomination of US$1, with detachable warrants with an exercise price of US$1.291/sh. SGX has granted in principle approval. Note the entitlement will be 313 bonds and 162 warrants for every 1000 Olam shares. The ex-entitlement date is 28 Dec 2012. Other key dates as follows. Market watchers have likened Carson Block’s attack on Olam, to him taking on the Singapore govt (and Singapore Inc). Temasek is standing behind Olam, putting its own reputation as one of the world’s savviest investors on the line. When Olam said two weeks ago it would sell as much as US$1.25b in bonds and warrants to existing sh/h, Temasek, agreed to buy any rights not taken by other investors, meaning it could end up owning as much as 29% of Olam. Temasek said it is “comfortable with Olam’s credit position and longer-term prospects, and pleased to have another opportunity to invest in the company, alongside other shareholders”.