Back to the complete issue
Thursday, 17 January 2019

Qalaa signs MoU with Qatar Petroleum to raise its stake in Egyptian Refining Company

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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.