CAIRO: Qalaa Holdings (CCAP) announced Tuesday it has mandated global investment bank Renaissance Capital to study the available alternatives for obtaining international finance.
In a disclosure statement to the Egyptian Exchange (EGX), Qalaa said these alternatives “may include the issuance of bonds which are convertible into shares, as part of its (the company) efforts to restructure its financial obligations.”
In February, the company’s board of directors approved a disclosure statement to the EGX to increase its paid capital by 1.7 billion EGP ($223 million,) 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.
Further, Qalaa had also mandated investment bank EFG-Hermes to give advice on the possible divestment of its food businesses: Rashidi El-Mizan and Dina Farms. The company said 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,” Ahmed Heikal, Chairman and Founder of Qalaa Holdings said in a February statement.