EGYPT – Qalaa Holdings announced that its subsidiary MENA Glass Ltd. has reached its financial close on the sale of the entirety of its stake in Misr Glass Manufacturing Company (MGM) and the entirety of its stake in United Glass Company (UGC) to Middle East Glass Manufacturing Company, at a combined equity value for 100% of both MGM and UGC of EGP 828m.
Qalaa Holdings had maintained an effective ownership of 15.2% in MGM and UGC, according to press statement issued Thursday.
Company co-founder and Managing Director Hisham El-Khazindar said its exit from MGM and UGC marks the year ahead of the company as one where Qalaa will continue to push forward in the delivery of its strategy and the execution of asset divestment programme.
He is confident that MGM will continue its growth trajectory under the stewardship of Middle East Glass since his company devotes maximum attention to high-growth business in the sectors deemed vital for the region’s development such as refining, energy distribution and transportation, and logistics.
“The exit helps accelerate the delivery of Qalaa’s 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,” El-Khazindar said.
Pharos Holding acted as financial advisers and Zaki Hashem Law Office acted as legal counsel to the sellers in the transaction.
Qalaa Holdings is known as “CCAP.CA” in the Egyptian Exchange (EGX) and is an African leader in infrastructure and industry.
Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in core industries including energy, cement, transportation and logistics, and mining.