Date: Tuesday 29 May 2012
Cairo, Egypt / 29 May, 2012 12:15 PM
OCI Fertilizer Holding Agrees to Sell its Stake in the Gavilon Group, LLC to Japanese Trading House Marubeni Corporation
Orascom Construction Industries (OCI) announced today that its wholly-owned subsidiary OCI Fertilizer Holding has agreed to sell its 16.8% stake in the Gavilon Group, LLC (Gavilon) to Japanese trading house Marubeni Corporation (Marubeni). Proceeds from the transaction amount to approximately US$ 604.8 million. Marubeni valued 100% of Gavilon's equity at US$ 3.6 billion.
OCI initially paid US$ 340 million for their stake in July 2008.
The transaction is expected to close by September and OCI will use the cash proceeds to finance its Fertilizer Group expansion strategy in North America and potentially invest in other opportunities under review. In addition, part of the proceeds will be returned to stakeholders.
The Fertilizer Group will maintain its existing relationship with Gavilon under the new ownership of Marubeni in marketing fertilizer products in North America.
About Orascom Construction Industries
OCI is one of Egypt's largest corporations employing more than 72,000 people in 35 countries around the globe. The OCI Fertilizer Group owns and operates nitrogen fertilizer plants in Egypt, the Netherlands, the United States, and Algeria and has an international distribution platform spanning from the Americas to Asia. The OCI Fertilizer Group ranks among the world's top fertilizer producers with a production capacity which will exceed 7.0 million metric tons in 2012. The OCI Construction Group provides international engineering and construction services primarily on infrastructure, industrial and high-end commercial projects in Europe, the Middle East and North Africa for public and private clients. The OCI Construction Group ranks among the world's top global contractors.
About The Gavilon Group LLC
The Gavilon Group, LLC is a leading commodity management firm, connecting producers and consumers of feed, food and fuel through its global supply chain network. Gavilon leverages its strategic partnerships and more than 300 facilities and regional offices worldwide to link agricultural and energy supply with demand. The company provides origination, storage and handling, transportation and logistics, marketing and distribution, and risk management services to tens of thousands of customers each year. Headquartered in Omaha, Nebraska, Gavilon employs 2,000 people around the world and is ranked America's 19th largest private company by Forbes. For more information, please visit www.gavilon.com.
For additional information contact:
OCI Investor Relations Department:
Tel: +202 2461 1036/0727/0917
Fax: +202 2461 9409
For additional information on OCI:
OCI stock symbols: OCIC.CA / OCIC EY / OCICqL / ORSD / ORSCY
Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil
or share it with one of these popular networks:
You are here: news