Qalaa officially offloads 18% stake in Taqa in debt settlement agreement: Qalaa Holdings has settled some EGP 3.35 bn worth of debt to four local banks in exchange for a 17.7% stake — 239 mn shares — in Taqa Arabia, according to an EGX disclosure (pdf).

The banks: Banque Misr and Banque du Caire each got a 4.9% stake in the company, while the Arab African International Bank got a 6.0% stake and Al Ahli Bank of Kuwait got a 1.9% stake. Silverstone Capital Investments — an entity controlled by Qalaa Holdings — transferred the shares in a block trade yesterday.

That’s not all: The agreement saw Qalaa settling its entire EGP 4.5 bn debt in exchange for the 17.7% stake in Taqa as well as a land plot overlooking the Nile. There was no mention of the land plot in the disclosure.

Remember: Under the agreement, 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.

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’s shares rose 1.0% during yesterday’s trading to close at EGP 2.11, while Taqa saw its shares rise 2.3% during yesterday’s trading to close at EGP 14.62.

Qalaa has been working overtime to settle its dues: The holding company’s plan to retire some USD 430 mn in foreign-currency debt also included a debt buyback program that saw it raise over EGP 2.6 bn from shareholders.

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