Qalaa Holdings Restructures Debts
African private equity firm Qalaa Holdings (Egyptian Exchange: CCAP.CA) has announced the transfer of its controlling interest in MENA Homes, the developer of Cairo's popular Designopolis Mall, to "majority co-investor" Financial Holdings International (FHI) in a debt restructuring deal that is expected to reduce the company's liabilities by Egyptian Pounds 800 million (£66 million) as it divests of real estate assets to focus on opportunities in its "core" energy, cement and transport sectors.
In a statement, the company also announced the transfer of subsidiaries Grandview and Dina Farms Land under an innovative, all-assets exchange proposal that will see Qalaa gain majority control of FHI's existing stakes in ASEC Holding (cement), TAQA Arabia (energy), Mashreq (energy), Nile Logistics (transport), Dina Farms Supermarkets (retail), and United Foundries (metals).
FHI was advised on the transaction which is expected to be completed by the end of the year by Dubai-based Emerging Markets Capital Partners Limited (EMCP).
Before & After: Summary of Proposed Divestments and Cross-Holdings
|
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% |
