Aggressive move contemplates a potential exit of remaining key food businesses to accelerate group deleveraging and de-risking; would permit the refocusing of bandwidth and resources on energy, cement and other core businesses.
Qalaa Holdings (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital), an African leader in infrastructure and industry, announced today that it has mandated EFG Hermes Investment Banking to advise on the possibility of full divestiture of Qalaa’s remaining key food businesses: leading confectioner Rashidi El-Mizan, a storied brand that is Egypt’s market leader in halawa and tahini products; and Dina Farms, the largest private-sector dairy farm in Egypt and Africa and the top fresh packaged milk producer in the country.
The news comes following a disclosure issued to the Egyptian Exchange yesterday noting that Qalaa expects to generate c. US$ 300 million in proceeds from exits in the medium term.
The packaged foods industry in Egypt has recently seen an uptick in M&A activity. “In this context, we have been approached by more than one party interested in potential transactions regarding our key investments in the agrifoods sector; we have a clear duty to shareholders to fully explore our options in this respect,” said Qalaa Holdings Chairman and Founder Ahmed Heikal.
Explained Qalaa Co-Founder and Managing Director Hisham El-Khazindar: “Any divestiture would achieve the twin aim of significantly accelerating the deleveraging of Qalaa, while simultaneously funding growth opportunities in core subsidiaries generally, and in nationally significant energy projects specifically, including fuels bunkering and storage project Mashreq in the Suez Canal and large-scale power generation projects by TAQA Arabia.”
Concluded Heikal: “This will hasten our return to profitability, which we would now anticipate in 2015 as opposed to next year as we had originally envisioned.”
Previous Qalaa Holdings press releases on this subject and others may be viewed online from your computer, tablet or mobile device at qalaaholdings.com/newsroom
Qalaa Holdings(CCAP.CA on the Egyptian Stock Exchange) is an African leader in infrastructure and industry. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in core industries including Energy, Cement, Agrifoods, Transportation & Logistics, and Mining. To learn more, please visit qalaaholdings.com
Statements contained in this News Release that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Qalaa Holdings. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Certain information contained herein constitutes “targets” or “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Actual events or results or the actual performance of Citadel Capital may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of Qalaa Holdings is subject to risks and uncertainties.
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