Observed recently that Olam has buy back close 20m of its own shares over the last 2-3 months.That is a whopping $36m worth of purchase in cash (assume a price of $1.8/shr).Since Olam already as a small float of less than 20% after the buyback initiated by Temasek a while ago, I wonder why they are doing this? Is it because some major shareholders is/are unloading?or it is something else?I doubt it is the minority shareholders that is unloading because they did not let go at $2.2 (from the Temasek offer) a while ago.
Remember, a while ago, Temasek sold 20% of their shareholding to Mitsubishi Lifestyle at $2.7 apiece.Right now, the two largest shareholders are Temasek and Mitsubishi. This is followed by the Kewalram family, CEO and its senior management staff.
I am still vested with Olam and will follow on this with interest. The positive thing about Olam right now is that they have prune away a substantial part of the unprofitable business and interest rate on debts have come down with Temasek backing.