Qalaa Holdings, an African leader in energy and infrastructure, has announced that its subsidiary Mena Glass has reached financial close on its entire stake in Misr Glass Manufacturing Company (MGM) and United Glass Company (UGC).

The sale has been made to Middle East Glass Manufacturing Company at a combined equity value for 100 per cent of both MGM and UGC of EGP828 million ($105.7 million), said a statement from the company.

Qalaa Holdings had maintained an effective ownership of 15.2 per cent in MGM and UGC, it added.

The exit is helping accelerate the delivery of Qalaa’s strategy, with its key elements being deleveraging at the holding and platform company levels; acquisition of additional stakes in key platform companies; selective investments within existing platform companies; and share buybacks so long as the company’s shares trade at a significant discount to their fair market value, further said the statement.

Hisham El-Khazindar, Qalaa co-founder and managing director, said: “Our exit from MGM and UGC marks the year ahead of us as one where Qalaa will continue to push forward in the delivery of its strategy and the execution of our asset divestment programme.”

“We are confident that MGM will continue its growth trajectory under the stewardship of Middle East Glass as we ourselves devote maximum attention to high-growth business — buoyed by Qalaa’s now more liquid and increasingly deleveraged balance sheet — in the sectors deemed vital for the region’s development such as refining, energy distribution and transportation and logistics,” he added.

Pharos Holding acted as financial advisers, and Zaki Hashem Law Office acted as legal counsel, to the sellers on the transaction, it stated. – TradeArabia News Service