CAIRO: Qalaa Holdings (CCAP) announced Sunday that its board of directors approved a disclosure statement to the Egyptian Exchange (EGX) to increase its paid capital by 1.7 billion EGP to 9.7 billion EGP from 8 billion EGP.
The proposed capital hike will be mainly funded through the capitalization of liabilities arising from the purchase of additional shares in core subsidiaries as Qalaa finalizes its transformation into a holding company with majority stakes in its core infrastructure and industrial investments, a statement from Qalaa read.
“The time is right to complete our transformation through the acquisition of additional stakes in the subsidiaries and business units that are best positioned to benefit from the upturn,” said Ahmed Heikal, Chairman and Founder of Qalaa Holdings.
Under the proposed increase, Qalaa Holdings will issue up to an additional 340 million shares, of which 255 million would be common shares and 85 million preferred shares.
This brings the total number of Qalaa’s outstanding shares to 1.94 billion, including 1.455 billion common shares and 485 million preferred.
Last week, the company announced that it had mandated investment bank EFG-Hermes to give advice on the possible divestiture of its food businesses, Rashidi El-Mizan, a leader in halawa and tahini products, and Dina Farms, a top producer of packaged milk in the country.
The company said in a Tuesday disclosure statement to the EGX that it expects to generate $300 million in the medium-term from the divestments.
“This will hasten our return to profitability, which we now anticipate in 2015 as opposed to next year as we had originally envisioned,” said Heikal.