London-based Tate and Lyle Plc's has agreed to sell its minority stakes in Egyptian and Saudi sugar units to its Saudi-based partner, Savola Group, which bets on soaring sales from the units this year.
The value of the deal was not disclosed, but Dubai-based Shuaa Capital said it could be worth 240 million riyals ($64 million) as it expects it to add 20 million riyals to the full-year net profit of Savola, the Middle East's biggest sugar refiner.
Savola said the agreement covered the purchase of the British sugar refiner and sweetener group's 3.58 percent stake in a sugar refinery in Egypt and a 9.68 percent stake in another refinery in Saudi Arabia.
Savola already holds a 64.8 percent stake in the Saudi sugar refinery which has an annual production capacity of 1.2 million tonnes and a 53.5 percent stake in the Egyptian refinery which can produce up to 750,000 tonnes per year. Turnover from the two units is expected to rise 41.5 percent this year, Zouhair Eloudghiri, chief executive of Savola Foods, told Reuters. Savola Foods is 90 percent owned by Savola.