Office Depot, Inc. (NYSE: ODP), a leading global provider of office supplies and services, today announced the closing of the sale of 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. (GIGANTE.MX) for the Mexican Peso amount of 8,777.36 million in cash.
All conditions, including receipt of Mexican regulatory approval and Grupo Gigante S.A.B. de C.V. shareholder approval, were obtained prior to closing the transaction. Grupo Gigante, S.A.B. de C.V. and its affiliates now have 100% ownership of Office Depot de Mexico.
“We are pleased to finalize this sale and thank Grupo Gigante for their partnership,” said Mike Newman, Executive Vice President and Chief Financial Officer for Office Depot. “The approximately $550 million in net after-tax proceeds from the sale will significantly enhance our liquidity position now and as we enter into the proposed merger with OfficeMax.”
As previously announced, a portion of the proceeds are expected to be used 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 and to redeem $150 million of maturing 6.25% bonds due in August 2013.About Office Depot Office Depot provides office supplies and services through 1,628 worldwide retail stores, a dedicated sales force, top-rated catalogs, and global e-commerce operations. Office Depot has annual sales of approximately $10.7 billion, employs about 38,000 associates, and serves customers in 60 countries around the world. Office Depot’s common stock is listed on the New York Stock Exchange under the symbol ODP. Additional press information can be found at: http://news.officedepot.com. NO OFFER OR SOLICITATION This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction in connection with the proposed merger of Office Depot, Inc. (“Office Depot”) with OfficeMax Incorporated (“OfficeMax”) or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
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