Olam International has agreed to divest its remaining 50% stake in Indonesian sugar joint venture (JV) Far East Agri to its Thai partner Mitr Phol Sugar.

Mitr Phol Sugar will acquire the remaining stake in Far East for a consideration of between $82.5m to $85m.

The parties involved finalised the deal on a willing buyer-willing seller basis.

Olam said that this divesture falls in-line with the six-year strategic plan that it announced last year.

The company will focus on sustainable businesses growth potential through divesting or restructuring de-prioritised assets and businesses. This will release capital that can be redeployed in other areas.

Olam expects to close the deal by the end of this month, subject to customary closing conditions. Following completion, the company will have no further involvement in Far East.

In December 2017, Olam International formed a joint venture (JV) with Mitr Phol Sugar to capitalise on growth opportunities for sugar milling and refining in Indonesia.

Mitr Phol invested $100m to acquire a 50% stake in Far East Agri, which operates sugar refinery PT Dharmapala Usaha Sukses (PT DUS) in Cilacap, Indonesia. At the time, Olam retained the remaining 50% stake.

Far East is currently developing a green-field sugar milling facility in East Java.