EGX listed Qalaa Holding has assigned CI Capital as advisor on the possibility of fully exiting its investments in Tanmeyah Micro Enterprise Services, the company announced on Monday.
Qalaa, which owns 70% in Tanmeyah, said the exit will help the company to provide liquidity to buy treasury stocks. It feels this type of investment with the current price will provide it with revenues more than any other type of investments.
Earlier in March, Qalaa Holding assigned international investment bank Renaissance Capital to study obtaining international funds for the company. In February, Qalaa announced increasing their capital to EGP 1.8bn.
Qalaa also announced its intention to exit its remaining food businesses, hiring investment bank EFG Hermes to advise on the possibility of divestiture.
The two food companies are Egypt’s giant confectioner Rashidi El-Mizan and private-sector milk producer Dina Farms, Qalaa said in a statement. It clarified that the news arrives following its announcement on Monday to generate $300m medium-term through exiting non-core projects.
On 4 February, Qalaa exited its 80% stake in investment bank Pharos Holding for Financial Investment, at a value of EGP 40m. A group of investors led by Pharos Holding’s chairman Mohamed Taymour has acquired the sold stakes, with Qalaa’s subsidiary Finance Unlimited.
Managing director and co-founder of Qalaa, Hisham El-Khazindar, said the company’s exiting of non-core projects would accelerate the deleveraging of Qalaa and fund growth opportunities in core subsidiaries, such as energy projects.
Qalaa Holdings, formerly known as Citadel Capital, currently owns assets amounting to $9.5bn. The company is also investing in the Suez Canal Development project through three of its subsidiaries. The group’s cement subsidiary, ASEC, is acting along with 32 other companies to dig the new canal.