On 10 November, Qalaa Holdings announced that its business unit, Gozour, has signed a sale and purchase agreement with Saudi Arabia’s Olayan Financing Company. Qalaa Holdings is a key leader in African infrastructure and industry, controlling subsidiaries in core industries including energy, cement and mining.
The agreement is for the sale of 100% of Rashidi El-Mizan, for a total consideration of EGP518 million. Up until this point, Qalaa Holdings has had an effective ownership of 55% in Rashidi El-Mizan.
Along with Qalaa’s proceeds from the sale, the transaction further delivers on Qalaa’s strategy for 2015, a key element of which was deleveraging at the holding and platform company levels. A further EGP237 million in debt will be deconsolidated from Qalaa’s consolidated financial statement as a result of the transaction.
EGF Hermes acted as Financial Advisor and Arab Legal Consultants as Legal Advisor to Qalaa Holdings.
Adapted from press release by Rebecca Bowden