African leader in infrastructure and industry will take its ownership stake to 70% from 51% through full subscription to an already-approved capital increase and a minor acquisition.
Qalaa Holdings (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital) has fully subscribed to an EGP 15 million capital increase for Tanmeyah for Micro Enterprise Services, a portfolio company of Qalaa subsidiary Finance Unlimited.
Qalaa alone has capitalized on the opportunity to extend financing to Tanmeyah in 2011in a time of crisis and is finalizing the acquisition of just over 4.3% of an existing Tanmeyah shareholder’s shares. Full subscription to the capital increase and the closing of the minority stake acquisition will see Qalaa Holdings’ effective ownership of Tanmeyah rise to 70.03% from 51.0% today.
The capital increase has received all necessary regulatory approvals from the Egyptian Financial Supervisory Authority (EFSA) and is scheduled to close during July pending finalization of other documentation formalities.
Established in 2009, Tanmeyah will have total paid-in capital of EGP 50 million following the capital increase.
“Tanmeyah is a company that has excellent growth potential within the current business environment in Egypt. It will play an important role in the development of Egypt by providing growth, working capital and other financial solutions to companies and individuals that would otherwise effectively be cut off from the financial system,” said Qalaa Holdings Chairman and Founder, Ahemd Heikal. “I personally look forward to Tanmeyah becoming over a one billion pound company in the near future,” he added.
Tanmeyah has grown to become a leading Egyptian provider of financial services to Egypt’s large under-served micro- and very-small-enterprise tiers. Since its inception in 2009 until today Tanmeyah has issued c. EGP 2.1 billion EGP in short term loans that do not exceed 12 months in duration and has acquired around 350,000 clients. The company’s current outstanding portfolio is EGP 330 million and expected to reach EGP 400 million by year’s end. In the first half 2014 Tanmeyah’s net profit reached EGP 15 million with the value of total loans for 2014 expected to reach EGP 650 million.
“Tanmeyah is expected to launch an additional 16 branches nationwide on top of the 99 branches that it has currently in order to serve a wider segment of the population,” said Amr El-Garhy, Managing Director at Qalaa Holdings.
According to Tanmeyah Co-Founder and Executive Chairman, Amr Abouesh, Tanmeyah continues to leverage its existing infrastructure and systems in offering a wide variety of financial services to its clients. Its branches currently host money transfer and remittances service providers and bill payment services in addition to ATM’s with a plan to expand the range of services offered to its client base such as very small enterprise lending and leasing.
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.
Tanmeyah Micro Enterprise Services was established in March 2009 to extend microfinance loans to micro-businesses in Egypt and offers financial solutions to those segments of the population who previously had no access to these services. As at December 2013, Tanmeyah had 99 branches and 1,000 employees. Tanmeyah has a strong product pipeline that includes extending very small enterprise credit as well as remittance and transfer services hosting.in the microenterprise segment, Tanmeyah offers loans in the EGP 1,000 to EGP 30,000 range, providing growth and working capital to businesses in all segments of the economy outside the agriculture and animal husbandry sectors.
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.
For more information, please contact:
Ms. Ghada Hammouda
CMO & Head of Corporate Communications
g...@qalaaholdings.com (click to reveal this email)
Tel: +20 2 2791-4439
Fax: +20 22 791-4448
Mobile: +20 106 662-0002