Qalaa Holdings, formerly Citadel Capital, announced that its Board of Directors has approved the disclosure form related to its capital increase to EGP1.7 billion.

The leading investment firm has approved a share swap with subsidiary companies that equates to an EGP1.7 billion (USD223 million) capital increase.

The increase would involve exchanging shares in the holding company for larger stakes in subsidiary companies, mostly in the energy and cement sectors, and would bring the company's capital to EGP9.7 billion.

The move would be the firm’s third capital hike since it listed on the Egyptian bourse in 2010 and comes as the company considers a series of money-raising divestments as it seeks a return to profit.

Earlier, the company said it seeks to divest its key food businesses Rashidi El-Mizan and Dina Farms.

Meanwhile, Qalaa said it expects to generate c.$ 300 million in proceeds from exits in the medium term.

Commenting on these movements, Qalaa Co-Founder and Managing Director Hisham El-Khazindar, said "Any divestiture would achieve the twin aim of significantly accelerating the deleveraging of Qalaa, while simultaneously funding growth opportunities in core subsidiaries generally, and in nationally significant energy projects specifically, including fuels bunkering and storage project Mashreq in the Suez Canal and large-scale power generation projects by TAQA Arabia."