Savola Group said it will sell its entire stake in a real estate project in Jeddah, Saudi Arabia, for SR593.5 million ($158.3 million) to an affiliate.

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

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

Savola will book a net capital gain of SR187 million ($49.8 million) in the third quarter, 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.-Reuters