SINGAPORE: Singaporean commodity trader Olam International said on Friday it will sell its sugar, rubber, wood products and fertiliser businesses and other assets to release $1.6 billion of cash to reinvest as part of a six-year strategic plan.

The company plans to invest $3.5 billion in the period to 2024 in 12 prioritised businesses, including edible nuts, cocoa, cotton, coffee, grains and animal feed, it said in a statement.

Olam is majority owned by Singapore state investor Temasek Holdings and counts Japanese trading house Mitsubishi Corp as its second-largest shareholder.

A major player in markets for a number of agricultural commodities, its shares touched a two-and-a-half year low late last year but have since bounced back by about 15 percent.

Olam said it was engaging financial advisors to explore various options to maximise value for shareholders, an exercise that should be completed by the fourth quarter of 2019.

The 2019-2024 plan includes growing its soluble coffee business, dairy farming in Russia and flour milling in West Africa, while expanding its onion, garlic and tropical spices businesses.

The company is targeting cost savings of $200 million over the period.

Olam said earlier this month it would shut its sugar trading desk, exiting a market hit by a global supply glut. – Reuters