Qalaa Holdings MENA Glass Ltd. Closes Sale of Misr Glass Manufacturing and United Glass Company

Qalaa Holdings had maintained an effective ownership of 15.2% in MGM and UGC.

Qalaa Holdings (CCAP.CA on the Egyptian Exchange), an African leader in energy and infrastructure, announced today that its subsidiary MENA Glass Ltd. has reached financial close on the sale of the entirety of its stake in Misr Glass Manufacturing Company (MGM), a leading regional producer and exporter of glass containers, 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 c. EGP 828 million.

Qalaa Holdings had maintained an effective ownership of 15.2% in MGM and UGC.

“Our exit from MGM and UGC marks the year ahead of us as one where Qalaa will continue to push forward in the delivery of its strategy and the execution of our asset divestment program,” said Qalaa Co-Founder and Managing Director Hisham El-Khazindar. “We are confident that MGM will continue its growth trajectory under the stewardship of Middle East Glass as we ourselves devote maximum attention to high-growth business — buoyed by Qalaa’s now more liquid and increasingly deleveraged balance sheet — in the sectors deemed vital for the region’s development such as refining, energy distribution and transportation and logistics.”

The exit is helping 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.

Pharos Holding acted as financial advisers, and Zaki Hashem Law Office acted as legal counsel, to the sellers on the transaction.

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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 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
Qalaa Holdings
ghammouda@qalaaholdings.com

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