The procedures for exiting Dina Farms and Rashidi El Mizan are ongoing, according to Hesham El-Khazindar, Co-Founder & Managing Director of Qalaa Holdings.
It is expected that by the third quarter (Q3) of this year, a final agreement will be settled.
“We are on track and seeing significant interests from serious buyers, and we’re proceeding through a process that we hope will allow us to maximise the value of these disposals,” El-Khazindar told Daily News Egypt.
He did not however reveal any names of the potential buyers interested in purchasing Qalaa’s shares in both companies.
Stock market-listed Qalaa Holdings previously announced its intention to exit its remaining food businesses, hiring investment bank EFG Hermes to advise on the possibility of divestiture.
Before officially announcing its intentions to exit, the company revealed that it expects to generate $300m in the medium-term, through exiting non-core projects.
El-Khazindar has previously said that the company’s exiting of non-core projects would accelerate the deleveraging of Qalaa and fund growth opportunities in its core subsidiaries.
He also noted that the company’s main focus at this point in time and going forward will be the infrastructure and energy sectors, amongst others.
On 4 February, Qalaa exited its 80% stake in Pharos Holding for Financial Investment, at a value of EGP 40m. A group of investors, led by Pharos Holding’s chairman Mohamed Taymour, acquired the sold stakes with Qalaa’s subsidiary Finance Unlimited.
Qalaa Holdings, formerly known as Citadel Capital, currently owns assets amounting to $9.5bn. In the Q3 of 2014, it reduced its losses to EGP 59.6m, 67% less than the preceding quarter.
Qalaa Holdings is also investing in the Suez Canal Development project through three of its subsidiaries. The group’s cement subsidiary, ASEC, is participating with 32 other companies to dig the new canal.