OLAM

OLAM: Its US$750m rights issue of bonds with detachable warrants closes with 1.1x subscription of amt offered. The bonds and warrants will be listed and begin trading on SGX on 31 Jan 2013. The bonds with 6.75% coupon will mature in 2018. The warrants has the right to subscribe for 1 new share at US$1.291/share. CEO noted that the Company is pleased with the positive results of this rights offering, which indicate strong support from the bond and equity markets for Olam. Also stating that the Company will now be focusing on delivering results and enhancing value for the Company’s investors. Company currently trades at 10.5x P/E, with commodity peers Noble Group at 13x, Wilmar 15x P/E.