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Qalaa Holdings buys Qatar Petroleum’s stake in Egyptian Refining

Qalaa Holdings buys Qatar Petroleum’s stake in Egyptian Refining

Cairo - Mubasher: Qalaa Holdings signed a memorandum of understanding (MoU) with state-run Qatar Petroleum (QP) to purchase an additional stake in the Egyptian Refining Company (ERC).

The Cairo-based investment company is expected to obtain the required financing for concluding the deal in the second quarter of 2019, Qalaa said in a filling to the Egyptian Exchange (EGX).

If the deal consummated, the indirect ownership of Qalaa Holdings in ERC is likely to increase to 23%.

Pharos Research raised the fair value of Qalaa Holdings from EGP 3 to EGP 3.29 per share with “Equalweight” recommendation.

Chairman of Qalaa Holdings previously announced the company’s plan to float stakes in Taqa Arabia and ERC on the EGX in 2019. 

During the first nine months of 2018, the company posted EGP 298.42 million in net profits, compared to net losses of EGP 4.13 billion in the corresponding period of 2017.

The ECR is conducting a financial restructuring for the facility project located in Mostorod in an attempt to obtain additional loans and payments valued at $500 million.

Qalaa Holdings previously announced that it holds an indirect ownership of 16.76% in ERC.

By 01:10 pm Cairo time, the stock of Qalaa Holdings rose 2.42% to EGP 3.81.