M&A WATCH- Qalaa inks MoU to raise stake in key subsidiary Egyptian Refining Company: Qalaa Holdings has signed an MoU with Qatar Petroleum to purchase an additional stake in the Egyptian Refining Company (ERC), which owns the USD 4.3 bn Mostorod refinery, Qalaa said in a statement to the EGX (pdf). Qalaa is in “advanced stages’’ of securing the financing needed for the transaction, which would raise its effective ownership of ERC to 23%, and expects to reach financial close in 2Q2019. The statement did not provide further details on the anticipated value of the transaction.

Background: Qalaa Managing Director Hisham El Khazindar had said in September that Qalaa could increase its stake in ERC through a capital increase. Qalaa is planning to sell shares in the parent company of ERC along with its unit TAQA Arabia at early 2020. ERC’s USD 4.3 bn refinery in Mostorod is slated to begin operating in May 2019 and hit its stride in revenue and profitability in the second half of the year.