Egypt's OCI says to get $605 million from Gavilon sale

Egypt’s OCI says to get $605 million from Gavilon sale

The deal is part of a $3.6 billion takeover by Marubeni of Gavilon, whose other owners include billionaire investor George Soros and hedge fund manager Dwight Anderson.

May 29, 2012 6:24 by Reuters

Egypt’s Orascom Construction Industries (OCI) said on Tuesday it would earn $605 million from the sale of its 16.8 percent stake in U.S. grains merchant Gavilon to Japanese trading house Marubeni.

The deal is part of a $3.6 billion takeover by Marubeni of Gavilon, whose other owners include billionaire investor George Soros and hedge fund manager Dwight Anderson.

“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.

“In addition, part of the proceeds will be returned to stakeholders,” it said in an emailed statement.

OCI said it bought its stake in Gavilon in July 2008 for $340 million.

Gavilon would continue to market OCI fertiliser products in North America after the sale is continued, OCI said.

OCI’s share price was steady at 1210 GMT, while the benchmark index had fallen 1.2 percent.