By Jiahui Huang
Olam Group’s shares fell to a near 15-year low, with sentiment still weighed after the Singapore-listed agricultural commodities trader said its Nigerian unit had posted a bond for one of its directors.
“The company wishes to inform that it has been notified by Olam Nigeria that it has posted a bond for Mr. [Prakash] Kanth on or about 5.00 p.m. Nigeria time (midnight Singapore time), to secure the continued cooperation of Mr. Kanth with any legitimate requests from relevant Nigerian authorities for information or assistance.” Olam said in a filing to the Singapore Exchange on Wednesday.
Shares fell 8.7% to touch S$1.05 and are now trading at S$1.06.
Earlier this week, Olam denied two news reports that alleged that the commodity trader’s Nigerian units and subsidiaries were involved in a multi-billion dollar fraud. In a Monday filing to the Singapore Exchange, Olam refuted the allegations, calling them “baseless and inflammatory statements.”
“The company continues to cooperate fully with the relevant authorities, and will update our shareholders and the investing public on any material developments in accordance with the requirements of the SGX-ST listing rules,” Olam said Wednesday.
Write to Jiahui Huang at [email protected]
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