KUALA LUMPUR (Sept 12): Integrated palm oil player IOI Corp Bhd has sold its 70% controlling stake in specialty edible-oils provider IOI Loders Croklaan to New York-listed Bunge Ltd for US$595 million plus 297 million euros cash.

In a filing with Bursa Malaysia today, IOI Corp said it entered into a sale agreement with Koninklijke Bunge, Bunge’s wholly-owned subsidiary, to dispose of the controlling stake in Loders — the company that it has invested more than a decade ago to expand its specialty oil operation.

The plantation giant said that the disposal is part of its internal restructuring exercise.

Bunge will own a 70% stake in Loders while IOI Corp will retain a 30% stake upon the completion of the divestment. And IOI Corp will continue to be the main supplier of palm oil and palm products to Loders. “In this respect, IOI will maintain our strong sustainability commitments as spelled out in IOI Group’s Sustainable Palm Oil Policy”, said IOI’s chief executive officer Datuk Lee Yeow Chor in the statement.

Lee highlighted that IOI will still play an important role in Loders given its expertise in palm oil sourcing and business experience in the fast-growing Asia Pacific Region.

“IOI will have two representatives on Loders’ five-member board of directors and our representatives will also be involved in key management decisions taken by Loders,” he added.

After the transaction, Loders, in combination with Bunge, will be part of a global agri-food company with product offerings based on both tropical and seed oils.

“Given the complementary nature of Loders and Bunge’s asset base and product offerings, we expect the integration process to be smooth and that any change to Loders’ operations and employee movements after the close of the transaction to be insignificant,” IOI said in the statement.

Barring any unforeseen circumstances, IOI expects the disposal to be completed in the coming quarter.

IOI Corp’s shares closed two sen or 0.44% higher at RM4.55, for a market capitalisation of RM28.6 billion.