Office Depot To Sell Its 50% Stake In Latin American JV, Office Depot De Mexico

Office Depot Inc. (ODP) announced a definitive agreement to sell its 50% stake in Latin American Joint Venture Office Depot de Mexico S.A. de C.V. to Grupo Gigante, S.A.B. de C.V. for 8.78 billion Mexican Pesos in cash. Office Depot has obtained the required consent from OfficeMax (OMX) to proceed with the sale.

Office Depot de Mexico, a joint partnership between Office Depot and Grupo Gigante, has more than 248 stores throughout Mexico and Central America.

Office Depot. expects to use the estimated $550 million in net after-tax proceeds from the sale to redeem 50% of the company's convertible preferred shares held by BC Partners Inc. and its affiliates upon receiving shareholder approval of the planned merger with OfficeMax, as well as to redeem the $150 million of maturing 6.25% bonds due in August 2013.

by RTTNews Staff Writer

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