Deal #2236 Version #57348

Olam Palm Gabon (“OPG”), the 60/40 joint venture company between Olam International Limited and the Republic of Gabon, has entered into a sale of long term lease rights of land and a sale and lease-back of plantation and milling assets, comprising 20,030 hectares of total land area in Awala, Gabon and including 6,502 hectares of planted area, for a cash consideration of US$130.0 million with YCAP Asset Management. Under this agreement, YCAP holds the rights to the long term leases on the land. The agreement is valid for a period of 18 years, extendable for another three years at the request of either party. OPG retains the right to operate the palm plantation and mill in Awala and will therefore continue to participate in the production economics of the palm plantation without the asset intensity. A portion of the forestry assets are scheduled to be sold to an unnamed Chinese consortium in the fourth quarter of 2014. Following the SIAT acquisition in July 2016, OPG now manages an additional 8,411 ha, including 5,809 ha of plantation that were established in the 1980s. One of the main reasons that Olam chose to invest in Gabon initially was the West African nation’s political stability and the government’s desire to promote economic growth. The plantations have recently been certified as RSPO. The company promised to stop any acitivites which cause deforestation for one year from December 2016, following a report on the companies activities by Mighty Earth- Palm Oil’s Black Box.