Exit helps to accelerate the delivery of Qalaa’s strategy which includes deleveraging at the holding and platform company levels
Qalaa Holdings (CCAP.CA on the Egyptian Exchange), an African leader in energy and infrastructure, announced today that its subsidiary MENA Glass Ltd. has signed agreements for the sale of the entirety of its stake in Misr Glass Manufacturing Company (MGM), a leading producer and exporter of glass containers across the Middle East and North Africa, to Middle East Glass Manufacturing Company, and the entirety of its stake in United Glass Company (UGC) to MGM Holding, at a combined equity value for 100% of both MGM and UGC of c. EGP 828 million. The agreeing parties expect to finalize the closing in 1Q2016 as soon as the purchasers complete their funding of the transactions.
Qalaa Holdings currently has an effective ownership of 15.2% in MGM and UGC.
“As our fifth disposal announcement this quarter, the transaction underscores both our commitment to divesting non-core operations and our ability to conclude deals at the right valuations,” said Qalaa Co-Founder and Managing Director Hisham El-Khazindar. “It has been a pleasure to work with the team at MGM to help it capture new opportunities. We now look forward to watching it grow under the stewardship of Middle East Glass as we ourselves focus on our core investments.”
The exit is helping accelerate the delivery of Qalaa’s FY15 strategy, with its key elements being deleveraging at the holding and platform company levels; acquisition of additional stakes in key platform companies; selective investments within existing platform companies; and share buybacks so long as the company’s shares trade at a significant discount to their fair market value.
Qalaa maintains the stance that further divestments to support its strategic goals will be executed as need be and is already in advanced stages of negotiations for several divestments, including Dina Farms and ASEC Cement’s operations in Algeria (Zahana Cement Co. and Djelfa Cement Co.). Qalaa has recently announced exiting its investments in confectioner Rashidi El-Mizan, cheese manufacturer El-Misrieen, and cement companies ASEC Minya and ASEC Ready Mix.
As part of its transformation into a holding company, Qalaa has since 2014 divested non-core assets including Sudanese Egyptian Bank, float glass manufacturer Sphinx Glass, two metallurgy subsidiaries of United Foundries Co, and investment bank Pharos Holding.
Pharos Holding acted as financial advisers, and Zaki Hashem Law Office acted as legal counsel, to the sellers on the transaction.
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, 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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