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Exclusive: Qalaa Holding to sell 30% stake in the Arab Refining Co. by 2019

Tuesday 03 July 2018 06:35 PM

Ahmed Heikl
Ahmed Heikl

By Hazem Sherif  
Qalaa Holding is planning the initial  public offering of its subsidiaries on the Egyptian Stock Exchange within a five-year strategy, according to chairman Dr. Ahmed Heikl.
" The proposed IPO is to kick-off with  shares  of Taqa Arabia  in the third quarter of 2019, then with a 30% stake in the Arab Refining Company which owns 69.47% stake in the Egyptian Refining company's project, known as ' Masfaa ( refinery) Mostorad," Heikl told Al-Mal newspaper.
Qalaa Holding has a strategy for divesting itself from a number of businesses while retaining  subsidiaries operating in 8 sectors, provided that stakes from all subsidiaries shall be put out for sale on EGX within an IPO that is planned to finish off late 2023 with shares of Nile Logistics specializing in river transports.
The eight companies include Dina Farms which will be offered on EGX by 2020  alongside  with shares of Ascom Geology & Mining which is already listed on the financial securities market.
Also included are Tawazun Holding specializing in generating energy from wastes, Al-Watania Development Co. operating in cement sector abroad, El-Watania Printing  and the United Co. for Foundries, as stakes in all the four companies will go public during 2021 and 2022.
The Egyptian Refining Co., the largest among Qalaa Holding, is expected by Heikl to operate experimentally next November,  to reach full capacity late first quarter of 2019 and to have a noticeable footprint on the consolidated and stand-alone statements of the company's third quarter results of the same year.
" Qalaa Holding's strategy rests on retaining controlling stakes in the 8 companies even after executing the planned IPO," said Heikl, predicting Qalaa Holding to finalize the repayment of all its existing loans estimated at USD270mln and subsidiaries to take charge of repaying their own loans.
Heikl ruled out that Qalaa Holding may borrow  again during the next five years unless it takes part in a giant project similar to that of the Egyptian Refining Company.
Since it unveiled a strategy for dispensing with its non-core businesses in return for focusing on a select number of sectors, Qalaa Holding clinched 13 deals selling assets and stakes in subsidiaries since 2015 until the first quarter of 2018.
Also QH is set to sell all stakes in the three companies of Alegria-based Zahana Cement Co., Almad Healthcare, and Ezaco.
QH placed 100% appropriations in two defaulting companies for different reasons, namely National Petroleum Company, and Africa Railway Holding, which as established to run a railway linking Kenya with Uganda.