Qalaa to Divest Multiple Non-Core Platforms, Reduce Consolidated Debt and Acquire Additional Stakes in Proven Winners through a Transaction with FHI, a Major Co-Investor

Qalaa Holdings has today signed a set of agreements with Financial Holdings International (FHI), one of Qalaa’s major co-investors, through which Qalaa will acquire from FHI additional stakes in subsidiaries that are core to Qalaa’s future as a holding company.

Qalaa Holdings “Qalaa” (CCAP.CA on the Egyptian Exchange), an African leader in infrastructure and industry, has today signed a set of agreements with Financial Holdings International (FHI), one of Qalaa’s major co-investors, through which Qalaa will acquire from FHI additional stakes in subsidiaries that are core to Qalaa’s future as a holding company. Qalaa will simultaneously sell to FHI its holdings in multiple non-core business units.
The stakes Qalaa is acquiring are in companies that have leading positions in the energy, cement and transportation sectors, among others.
The transaction will entail Qalaa selling to FHI its stakes in MENA Homes, Grandview and Dina Farms Land Companies; the latter are to be spun-off from existing investments.

In parallel, Qalaa will acquire FHI’s stakes in ASEC Holding (cement), TAQA Arabia and Mashreq (energy), Nile Logistics (transportation), Dina Farms Supermarkets (food retail chain), and United Foundries (metallurgy).

The transaction is targeted to close in December 2015 subject to certain conditions precedent and customary termination rights. The transaction will result in a reduction of Qalaa’s consolidated debt by c. EGP 800 million. Deleveraging is a key strategic goal for the company in 2015 and onward.

Qalaa’s effective ownership of the assets changing hands through the transaction is outlined in the table below.

Qalaa’s Effective Ownership

Asset stakes added by Qalaa

Current

Post Transaction

ASEC Holding

69.3%

99.0%

NDT Convertible*

38.1%

84.1%

TAQA Arabia

62.6%

80.4%

Mashreq

71.3%

84.3%

Nile Logistics

67.5%

92.6%

Dina Farms Retail Supermarkets

55.0%

88.6%

United Foundries

67.5%

100.0%

Assets sold by Qalaa

Current

Post Transaction

MENA Homes (Designopolis Mall)

60.2%

0.0%

Grandview

48.0%

0.0%

Dina Farms Land Companies

55.0%

0.0%

*NDT convertible includes note 1& 2

Emerging Markets Capital Partners Limited (EMCP) DIFC acted as sole financial advisor to FHI.

—Ends—

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.

Forward-Looking Statements
Statements contained in this News Release that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Qalaa. 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 Qalaa may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of Qalaa is subject to risks and uncertainties.

For more information, please contact:
Ms. Ghada Hammouda

CMO & Head of Marketing Communications
Qalaa Holdings
ghammouda@qalaaholdings.com

Tel: +20 2 2791-4439
Fax: +20 22 791-4448
Mobile: +20 106 662-0002