Egypt's OCI Says Fertiliser Unit Sells Gavilon Group Stake For About $604.8 Million
First Published Tuesday, 29th May 2012 11:48 am - © 2012 Dow Jones
DUBAI (Zawya Dow Jones)--Egypt's Orascom Construction Industries (OCIC.CI) said Tuesday that its fertiliser unit has sold its 16.8% stake in Gavilon Group LLC, the U.S.' third-biggest grain handler, to Japanese trading house Marubeni Corp. for about $604.8 million.
The sale is part of Marubeni's (8002.TO) acquisition of Gavilon Group LLC, for $3.6 billion excluding debt, a deal announced earlier Tuesday and one that will create one of the world's largest grain traders.
OCI initially paid $340 million for its Gavilon stake in July 2008, the company said in an emailed statement.
"The transaction is expected to close by September and OCI will use the cash proceeds to finance its Fertiliser Group expansion strategy in North America and potentially invest in other opportunities under review," OCI said. Part of the proceeds will also be returned to shareholders, it added.
OCI shares last traded down 1.5% at EGP261.99 in a broadly lower overall market.
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