Qalaa Holdings to exit up to 3 firms in 2yrs

Cairo - Mubasher: Qalaa Holdings aims to divest two to three subsidiaries in 2019 and 2020, the firm's founding partner and managing director said.

The Cairo-based investment company’s recent divestments can be attributed to its strategy to focus on a limited number of sectors, most notably the energy sector added to several industrial investments Hisham El-Khazindar told CNBC Arabia on the sidelines of the World Economic Forum (WEF) in Davos.

Qalaa is about to end its divestment phase which started in 2015, the company’s managing director added.

Liquidity generated from these divestments would be used to reduce debts, meet obligations, and finance a number of new projects including increasing Qalaa's stake in the Egyptian Refining Company (ERC) and financing the solar power plant in Aswan's Benban with EGP 1.35 billion investment.

Last week, Qalaa announced signing a memorandum of understanding (MoU) with state-run Qatar Petroleum (QP) to purchase an additional stake in ERC.

In October, chairman Ahmed Heikal expected Qalaa to offer stakes in Taqa Arabia and ERC for sale on the Egyptian Exchange (EGX) in the fourth quarter of 2019.

During the first nine months of 2018, Qalaa posted EGP 298.42 million in net profits, against 4.13 billion in net losses during the corresponding period in 2017.

Qalaa’s ERC is conducting a financial restructuring for the 330,000 square-metre facility project located in Mostorod in order to receive additional loans worth $500 million.

In November 2017, Qalaa Holdings sold its entire stake in garment manufacturer Dice for about EGP 300 million ($17 million).  

Mubasher Contribution Time: 22-Jan-2019 15:23 (GMT)
Mubasher Last Update Time: 22-Jan-2019 15:28 (GMT)