Qalaa Holdings announced on Tuesday that its Gozour business unit signed a sale and purchase agreement with Saudi Arabia's Olayan Financing Company and its subsidiaries, for the sale of 100% of confectioner Rashidi El-Mizan with a total consideration (equity value) of EGP 518m. Qalaa Holdings currently has effective ownership of 55% in Rashidi El-Mizan. In February 2015, Qalaa announced its intention to exit its remaining food businesses, Rashidi El-Mizan and Dina Farms. Before officially announcing its intentions to exit, the company revealed that it expects to generate $300m in the medium-term, by exiting non-core projects. EFG Hermes acted as Financial Advisor and Arab Legal Consultants as Legal Advisor to Qalaa Holdings on the transaction. Also in 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 is also investing in the Suez Canal Development project through three of its subsidiaries. The group's cement subsidiary, ASEC, participated with 32 other companies to dig the new canal. Qalaa Holdings, formerly known as Citadel Capital, currently owns assets amounting to $9.5bn. In the third quarter of 2014, it reduced its losses to EGP 59.6m, 67% less than the preceding quarter.
