Qalaa Holdings has an effective indirect ownership of 55% in both Enjoy and El-Aguizy
Qalaa Holdings (CCAP.CA on the Egyptian Exchange), an African leader in energy and infrastructure, announced today that its business unit Gozour has signed a sale and purchase agreement (SPA) to divest its entire holding in milk and juice producer, Enjoy and El-Aguizy International for Economic Development, an Egyptian packager and exporter of produce.
The purchaser of both companies is Kamal Haggag, a domestic industrial investor who also bought Gozour subsidiary El-Misrieen in December 2015.
Qalaa had previously impaired the value of its investments in Enjoy and El-Aguizy, which are distressed assets, and have not been operational since 2013 and 2015 respectively and thus their sale will have a positive impact on the P&L of Qalaa as it will be able to deconsolidate their losses. Both companies will be sold free of bank debt, while the purchaser will assume all other liabilities.
Qalaa Holdings currently has an effective indirect ownership of 55% in both Enjoy and El-Aguizy
The sale of El-Aguizy is expected to close quickly with Enjoy to follow once a set of conditions precedent are fulfilled.
Qalaa Holdings continues to divest non-core investments across its footprint as it focuses on core business units including Egyptian Refining Company (a US$ 3.7 billion megaproject that is now more than 84% complete and on track to begin production in 2017 and TAQA Arabia, Egypt’s leading independent energy distribution company.
Qalaa recently divested its stake in Tanmeyah Microenterprise Services, a business that it helped grow from an initial concept into an EGP 450 million operation that provides the Egyptian market with much–needed microfinance solutions, as well as its stake in Misr Glass Manufacturing Company (MGM), a leading regional producer and exporter of glass containers for an equity value of c. EGP 828 million.
Pharos Holding is the sell-side advisor on the Enjoy and El-Aguizy transactions.
Qalaa Holdings(CCAP.CA on the Egyptian Stock Exchange) is an African leader in energy and infrastructure. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in 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.
For more information, please contact:
Ms. Ghada Hammouda
CMO & Head of Marketing Communications
Tel: +20 2 2791-4439
Fax: +20 22 791-4448
Mobile: +20 106 662-0002