PIF-backed companies are on a roll, with Salic completing its USD 1.78 bn acquisition of a some 45% stake in Olam Agri. Meanwhile, Alat snapped up a stake in TK Elevator, establishing a JV that will provide manufacturing and training in the Kingdom.

SALIC + OLAM AGRI-

Salic secures majority in Olam Agri Holdings: PIF-backed Salic completed the purchase of an additional 44.6% stake in Singapore’s Olam Agri Holdings for USD 1.78 bn, Olam said in a filing (pdf) to the Singapore Exchange. Salic now owns around 80% of Olam Agri Holdings, with Olam Group set to retain the remaining 20% stake. The agreement also grants the PIF-backed firm the right to exercise a call option and buy up all remaining company shares within the next three years.

Valuation: The transaction values Olam Agri Holdings at USD 4 bn plus additional considerations — that is at a 23% premium to its current market capitalization and a 14% premium to its USD 3.5 bn valuation when Salic first bought a 35.4% stake in the company back in 2022, according to our maths.

ADVISORS- Olam enlisted Rothschild & Co as its lead financial advisor, along with Citigroup Global Markets and the Hongkong and Shanghai Banking Corporation as joint financial advisors for the transaction. WongPartnership provided legal counsel.

ALAT + TK ELEVATOR-

PIF’s tech arm Alat acquired a 15% stake in global vertical transportation player TKElevator(TKE), according to separate statements (here and here). The transaction — set to be finalized by 3Q 2025 subject to regulatory approvals — will see the two companies setting up a USD 160 mn JV for mobility products and solutions, backed by a local product development center. The value of the transaction and the names of selling shareholders were not disclosed.

The new JV will be headquartered in the Kingdom, and will gradually roll out local production of elevators, escalators, and moving walkways for Saudi and wider regional markets. This would mark the first-ever elevator and escalator manufacturing operation in the Kingdom by a global company, the statements said.

What we know so far: Although financial details are scant, the acquisition gives TKE an equity value of some USD 12.6 bn, rising to USD 24.1 bn when taking into account the company’s net debt, Bloomberg reported, citing sources it says are familiar with the matter.

ALSO ON OUR M&A WATCH-

DHL eCommerce snapped up an undisclosed minority stake in local parcel logistics player Ajex, according to a press release. The move comes in a bid to support DHL eCommerce’s “expansion into the rapidly growing Saudi Arabian e-commerce parcel market,” the statement said. DHL eCommerce has also locked in an option to upgrade its holdings in Ajex to a majority stake. No financial ticket or timeline for the transaction were disclosed.

About Ajex: Active since 2021, the outfit offers warehousing, cold chain logistics, and healthcare solutions, while also offering express distribution, e-commerce, and multi modal freight services. Ajax operates in Saudi Arabia, UAE, Bahrain, US, UK, Turkey, South Africa, and China, with upwards of 50 facilities, 900 vehicles, and a 1.5k person team.

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