CAIRO: Qalaa Holdings (CCAP) concluded the sale of 100 percent of its subsidiary Sphinx Glass to Saudi Arabia’s Construction Products Holding Company (CPC) through its subsidiary CPC Emirates, the company said in a Sunday statement to the Egyptian Exchange.
The total value of the deal is worth 816 million EGP ($ 114.2 million) and the Sphinx Glass’ employed capital is 430 million EGP, Qalaa said in the statement and that the transfer of ownership and payment was done.
Qalaa Holdings, formerly called Citadel Capital, will officially sign the deal with the Saudi company on Tuesday in the presence of Egyptian Minister of Trade and Industry Mounir Fakhry Abdel Nour, Saudi Ambassador in Cairo, Chairmen of Qalaa, and CPC, according to The Cairo Post.
“Qalaa Holdings’ 73.3 percent stake in Sphinx Glass will result in cash proceeds worth 508 million EGP ($71 million) to Qalaa Holdings after the estimated capital gains tax,” according to the statement.
Sphinx Glass produces 200,000 tons of float glass annually, one of the largest float glass producers in the MENA region. In 2013, it registered 393 million EGP in sales.
In a statement released in May after Qalaa received the offer Qalaa Holdings Co-Founder and Managing Director Hisham El-Khazindar said, “we are exiting our company investment [Sphinx Glass] as part of the execution of our new strategy to divest from non-core assets in a timely manner at the right valuations as we transform into an investment holding company with a narrower focus.”