Qalaa considers exit from food businesses, anticipates profitability in 2015
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CAIRO: Qalaa Holdings (CCAP) announced Wednesday that it has mandated investment bank EFG-Hermes to give advice on the possible divestiture of its food businesses.

The company said in a disclosure statement to the Egyptian Exchange (EGX) Tuesday that it expects to generate $300 million in the medium-term from the divestitures.

Qalaa is considering the selling confectioner Rashidi El-Mizan, a leader in halawa and tahini products, and Dina Farms, a top producer of packaged milk in the country, the statement read.

“We have been approached by more than one party interested in potential transactions regarding our key investments in the agrifoods sector; we have a clear duty to shareholders to fully explore our options in this respect,” Chairman and Founder Ahmed Heikal said in the statement.

Heikal added: “This will hasten our return to profitability, which we would now anticipate in 2015 as opposed to next year as we had originally envisioned.”

In August, Qalaa 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 total value of the deal is worth 816 million EGP ($ 114.2 million.)

The exit was also a part of a new strategy aimed at divesture from non-core assets in a timely manner while transforming to an investment holding company with a narrower focus.

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