Shareholders of Olam International Ltd approved the payment of US$6.4 million (RM) in fees to a unit of Singapore state investor Temasek Holdings Pte Ltd for fully backing the embattled commodity firm’s US$1.2 billion bonds-with-warrants issue.
The sub-underwriting fee, which had been expected to receive approval, is being paid to Temasek, also Olam’s second-biggest shareholder, as the Singapore commodities firm taps the debt market for funds to bolster its financial position.
Temasek’s backing for the complex bond issuance plan helped to ease the pressure on Olam, although concerns over its debt and it growth prospects persist and several brokers have cut their ratings and earnings forecasts. Full story
