Qalaa offloads 18% of its stake in Taqa Arabia in debt settlement agreement: Qalaa Holdings has signed a debt settlement agreement with a number of banks to settle the entirety of its EGP 4.5 bn debt in exchange for a 17.68% stake — 239 mn shares — in Taqa Arabia and a land plot overlooking the Nile, it said in a statement (pdf).

The banks in question: Qalaa signed the agreement with Banque Misr, Banque du Caire, Arab African International Bank, and Al Ahli Bank of Kuwait.

Qalaa can reacquire its shares: Qalaa — Taqa Arabia’s parent company — will retain the right to repurchase its shares in the energy distribution company from the banks within the next five years, but if that doesn’t happen the banks can resell the shares back to Qalaa in the sixth year.

And for its loans owed to the AIB, Qalaa inked a separate debt restructuring and settlement agreement with the Arab International Bank (AIB), under which it will pay back USD 184 mn in installments between 2024 and 2033 at an interest rate equivalent to the secured overnight financing rate.

Advisors: The Arab International Law Firm represented the banks in the transaction, while Zulficar and Partners represented Qalaa Holdings and its subsidiaries.

MARKET REAX- Qalaa shares on EGX jumped by 19.6% at yesterday’s close following the news.

Tags: