Qalaa Holdings Board of Directors has approved a capital increase of EGP1.7 billion to raise paid-in capital to EGP9.7 billion. The proposed capital increase will be primarily funded through the capitalisation of liabilities arising from the purchase of additional shares in core subsidiaries, particularly in energy and cement, from limited partners and co-investors. It comes as Qalaa finalises its transformation into a holding company with majority stakes in its core infrastructure and industrial investments. In this respect, this capital increase is a smaller, second and final version of the capital increase that Qalaa executed in 2014, which saw paid-in capital rise by EGP3.64 billion to EGP8 billion.
“With Egypt now on track for an economic recovery, the time is right to complete our transformation through the acquisition of additional stakes in the subsidiaries and business units that are best positioned to benefit from the upturn,” said Ahmed Heikal, Chairman and Founder of Qalaa Holdings, an African leader in infrastructure and industry.
“This will hasten our return to profitability during 2015, one year earlier than originally anticipated, and will open the way for dividend distribution in the coming years.”
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/africa-middle-east/23022015/qalaa-holdings-proposes-egp17-billion-capital-increase-381/