The subsidiary of industry and infrastructure company Qalaa Holdings, ASEC Cement, signed an agreement to sell its stake in subsidiaries ASEC Minya Cement and ASEC Ready Mix, representing 46.5% and 55% respectively, to Misr Cement Qena.
The transaction, worth approximately EGP 1bn, is expected to take place on 20 November, Qalaa Holding said in a statement Sunday. Selling ASEC Minya and Ready Mix will help accelerate the deconsolidation of a total debt of ASEC Cement by EGP 940, the statement said.
“Both ASEC Minya and ASEC Ready Mix established themselves as critical players in the vital Upper Egyptian market thanks to the exceptional dedication and hard work of its management team,” said Qalaa Holdings Founder and Chairman Ahmed Heikal.
“While we are happy to have built both companies, this exit allows us to achieve our objectives in an expedient way.”
Qalaa Holding reported EGP 84.7m in net losses during the second quarter of 2015, an improvement since last year’s reported losses of EGP 188.3m.