Savola sells Kazakhstan unit for $28.5m
Dubai, May 25, 2014
Saudi Arabia's Savola Group has sold its loss-making Kazakhstan edible oil business to a Russian company for 107 million riyals ($28.5 million), the Riyadh-listed food producer said in a bourse filing on Sunday.
Savola, which last month reported a 43 percent rise in first-quarter net profit, has made a capital gain of 17 million riyals from the sale, according to the statement, which did not identify the acquiring company.
The Kazakhstan unit made a loss of 1.8 million riyals in 2013 and its sale was part of a wider strategy to offload underperforming businesses, Savola said.
The Saudi firm is a major producer of cooking oil, sugar and other foodstuffs. - Reuters