Temasek Holdings has raised its stake in commodity trader Olam International from 16.99 per cent to 17 per cent, the firm said yesterday.
The news of the purchase sent Olam shares up 4.4 per cent or 6.5 cents to close at $1.54 yesterday.
Temasek remains Olam's second largest shareholder after the purchase.
"We have invested in Olam over several years. In our judgment, the company represents a reasonably attractive investment over the long term, and we are pleased to have the opportunity to add to our stake," a Temasek spokesman said yesterday via e-mail.
Temasek bought 200,000 shares for $293,000 on the open market on Tuesday through its vehicle Aranda Investments, Olam told the Singapore Exchange on wednesday.
Olam's largest shareholder is Kewalram Singapore, which owns 20 per cent and is part of Indian conglomerate Kewalram Chanrai Group that founded Olam in 1989.
Both Temasek and Kewalram have supported Olam's proposed rights issue of bonds and warrants which could raise as much as US$1.25 billion (S$1.5 billion) for the firm.
The rights issue consists of up to US$750 million in bonds, accompanied by warrants that will raise up to US$500 million upon conversion.
If shareholders want to buy shares that come with rights, their last day to do so is Thursday next week, according to a timeline Olam released on Monday.