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Sun 14 Sep 2014 01:46 PM

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Saudi's Savola says to sell stake in property project for $158m

Foodstuffs company will sell 30.4% interest in Jeddah real estate development to Kinan International

Saudi's Savola says to sell stake in property project for $158m
(Image Courtesy: www.savola.com)

Saudi Arabia's Savola Group has agreed to sell its entire stake in a Jeddah real estate project for SR593.5 million ($158.3 million) to an affiliate, the food producer said in a statement on Sunday.

The company, a producer of cooking oil, sugar and other foodstuffs, will sell its 30.4 percent holding in the Masharef project to Kinan International Company for Real Estate Development.

The buyer, 29.9 percent owned by Savola, will pay for the stake in four instalments to December 2017.

Savola will book a net capital gain of SR187 million in the third quarter of 2014, with proceeds from the sale to be used to support the firm's core businesses of food and retail.

Shareholders of Savola must approve the transaction at the next ordinary general meeting, the statement added. It did not give a date when it would be held.

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