Qalaa Holdings to focus on core subsidiaries, including cement

Qalaa Holdings to focus on core subsidiaries, including cement
26 June 2015

Qalaa Holdings has signed a set of agreements with Financial Holdings International (FHI), one of Qalaa’s major co-investors, through which Qalaa will acquire from FHI additional stakes in subsidiaries that are core to Qalaa’s future as a holding company. These include stakes in companies involved in the energy, cement and transportation sectors, among others.

Simultaneously, Qalaa will  sell to FHI its holdings in the following non-core business units: MENA Homes, Grandview and Dina Farms Land Companies, with the latter to be spun-off from existing investments.

Qalaa will acquire FHI’s stakes in ASEC Holding (cement), TAQA Arabia and Mashreq (energy), Nile Logistics (transportation), Dina Farms Supermarkets (food retail chain), and United Foundries (metallurgy). Post transaction, Qalaa's stake in ASEC Holding will increase from 69.3 per cent to
99 per cent.

The transaction is expected to close in December 2015 subject to certain conditions. The transaction will result in a reduction of Qalaa’s consolidated debt of cEGP800m. "Deleveraging is a key strategic goal for the company in 2015 and onward," the company said in a statement.

Published under Cement News