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Erg sees €1.6 bln cash from plant stake sale

Erg should get more than €1 billion in net cash from the sale of a stake in a plant to Russia's Lukoil, the Italian refiner's chief executive said on Thursday.

“Net cash coming from this deal is about €1.6 billion ($2.40 billion),” Alessandro Garrone told a conference call on Erg's quarterly results, which were published earlier in the day.

In June, Erg said in a statement it had agreed to sell 49% of its core Mediterranean ISAB refinery plant to Lukoil for €1.347 billion.

It aims to close the deal by year-end.

Garrone did not explain why the net cash amount from the sale would be higher than the value of the stake sale given in the June 24 statement. (Reuters)