26 June 2014       Download

Final transfer of cash and shares is expected to conclude in July

Qalaa Holdings (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital), an African leader in infrastructure and industry, and Saudi Arabia’s Construction Products Holding Company (CPC), through its subsidiary CPC Emirates, announced that they have signed today a sale and purchase agreement for the sale to CPC of 100% of Sphinx Glass.

The size of the transaction will imply an enterprise value of around US$ 180 million (EGP 1,280 million), which translates into a cash consideration of US$ 114.2 million (EGP 815 million) for 100% of the shares after deducting debt and liabilities to be assumed by CPC. The transfer of cash and shares is expected to conclude in July.

Qalaa Holdings’ 73.3% stake in Sphinx Glass will result in cash proceeds of around US$ 73 million (EGP 521 million) to Qalaa Holdings after the estimated capital gains tax. 

Sphinx Glass is a 200,000-ton-per-annum, state-of-the-art float glass production facility that began full operations in April 2010 and is today one of the largest independently operated float glass producers in the MENA region. In addition to being a key player in the Egyptian market, Sphinx Glass is also a significant regional and international exporter. 

The company specializes in the production of clear and tinted float glass and online coated glass in varying thicknesses. The company recorded EGP 393 million in sales in 2013 and is currently on target to exceed its budget for the second consecutive year.

“Sphinx Glass was an idea born on the eve of a global recession and commissioned mere months before the start of the 25 January 2011 Revolution,” said Qalaa Holdings Co-Founder and Managing Director Hisham El-Khazindar. “Despite these headwinds, we have worked closely with management and our co-investors to create over 375 new jobs and catapult Sphinx Glass into the ranks of both key national players