Qalaa Holdings has confirmed that its Algerian unit, ASEC Cement and ASEC Cement Djelfa Offshore has sold its operations in the country.
Qalaa Holdings disclosed in a statement that Djelfa was sold for a total of USD60 million to an Algerian investor.
The company said it is currently complying with government requirements to repatriate the proceeds from Algeria.
Qalaa held an effective (indirect) 37% ownership stake in AACC , which has a license to build a 3 million ton per annum cement plant in the city of Djelfa, Algeria.
Qalaa said the sale of AACC falls within its strategy of divesting non-essential assets and significantly reducing financial risk by deleveraging at the holding and platform company levels. In the past year the company has already made significant strides to streamline and reshape its investments with the conclusion of exits from El Aguizy, Tanmeyah, Misr Glass Manufacturing and the United Glass Company.
According to Qalaa Chairman and Founder, Ahmed Heikal, Qalaa Holdings will continue to focus management bandwidth on investments with high growth potential such as the Egyptian Refining Company (ERC), which is now nearing completion, and TAQA Arabia, Egypt’s largest private sector energy distribution business.