1 December 2015       Download

Gozour signs SPA’s to divest RIS assets in Sudan and El-Misrieen in Egypt for enterprise values of US$ 4.3 mn and EGP 50 mn respectively; transactions will result in the deconsolidation of a total EGP 20 mn in debt from Gozour’s balance sheet as Qalaa continues to divest non-core units and focus on growth of proven winners

Qalaa Holdings (CCAP.CA on the Egyptian Exchange), an African leader in infrastructure and industry, announced today that RIS – a business unit of its agrifoods subsidiary Gozour – has signed a sale and purchase agreement (SPA) for the sale of its two Halawa and Biscuits plants in Sudan to a Sudanese investor at an enterprise value of US$ 4.3 million. Qalaa Holdings currently has an effective ownership of 55% in RIS.

Furthermore, Gozour has signed another SPA for the sale of Misr October for Food Industries (El-Misrieen), an Egyptian manufacturer of cheese products, to a domestic industrial investor at an enterprise value of EGP 50 million. The acquirer will assume all debt, liabilities and obligations of El-Misrieen, including bank debt of c. EGP 16.5 million. Qalaa had previously fully written-down the value of its investment in El-Misrieen, which ceased operations in 2012.

Qalaa Holdings continues to divest non-core investments across its footprint as it focuses on core business units including Egyptian Refining Company (a US$ 3.7 billion megaproject that is nearing the 75% completion mark and is on track to begin production in 2017) and TAQA Arabia (Egypt’s leading independent energy distribution company).

The company also remains watchful for opportunities to create new shareholder value through the acquisition of additional stakes in core subsidiaries and to engage in share buybacks for so long as Qalaa shares trade at a steep discount to their fair value.

Pharos Holding was sell-side advisor for the El-Misrieen transaction.