Qalaa Holdings announced that the second phase of its stock issuance was covered by 64.7%, the company said in a statement to the Egyptian Stock Market on Sunday. Banks have collected 220 million subscriptions with a total value of EGP 1.1bn. In March, Qalaa's shareholders endorsed a capital increase to EGP 10bn from EGP 9bn and paid-in capital to EGP 9.7bn from EGP 8bn. Qalaa announced this year intention to exit its remaining food businesses, hiring investment bank EFG Hermes to advice on the possibility of divestiture. Qalaa's exit deal from its major investments is still in its early stages, and is expected to be concluded in Q3 of 2015, after the due diligence examinations by the companies. The two food companies are Egypt's giant confectioner Rashidi El-Mizan and private-sector milk producer Dina Farms, Qalaa said in a statement, clarifying that the news came following its announcement to generate $300m medium term through exiting non-core projects. A number of Saudi companies are competing for the purchase of Dina farms, among which are Almarai, Savola, Beyti, and a number of investment funds. EFG-Hermes was chosen as the financial advisor of the deal. On 4 February, Qalaa exited on its 80% stake in investment bank Pharos Holding for Financial Investment, at a value of EGP 40m. A group of investors led by Pharos Holding's chairman Mohamed Taymour has acquired the sold stakes, with Qalaa's subsidiary Finance Unlimited. Qalaa seeks to collect about $300m from the exit operations on the medium term, according to the earlier statement. Qalaa Holdings, formerly known as Citadel Capital, currently owns assets amounting to $9.5bn. Qalaa Holdings is also investing in the new Suez Canal project through three of its subsidiaries. The group's cement subsidiary, ASEC, has acted along with 32 other companies in digging the new canal.
