Saudi Arabia’s Savola Group has agreed to sell its entire stake in a Jeddah real estate project for 593.5mn riyals ($158.3mn) to an affiliate, the food producer said in a statement yesterday.
The company, a producer of cooking oil, sugar and other foodstuffs, will sell its 30.4% holding in the Masharef project to Kinan International Company for Real Estate Development.
The buyer, 29.9% owned by Savola, will pay for the stake in four instalments to December 2017.
Savola will book a net capital gain of 187mn riyals 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.
Jordan August
inflation edges
down to 3.16%
Jordan’s year-on-year consumer price inflation fell slightly to 3.16% in August from 3.21% in July, Department of Statistics figures showed yesterday.
The government and the International Monetary Fund (IMF) are targeting inflation between 3% and 4% in 2014 against an average of 5.6% last year, reckoning with continued subsidies and an expected lower energy import bill.