Arab Finance: Qalaa Holdings’ board has approved purchasing an additional stake in the Egyptian Refining Company (ERC) to raise its indirect stake in ERC to 27.1% from 13%, according to a disclosure.
Under the transaction, Qalaa will acquire a 55.4% stake in New Age Refining Ltd, which will purchase all shares in QPI Egypt Ltd from QatarEnergy at par value. QPI Egypt holds an actual indirect interest of 25.4% in ERC.
The financial close is expected in December 2026, subject to fulfillment of the agreed terms and conditions.
Qalaa Holdings appointed Baker Tilly Financial Advisory as an independent financial advisor to assess the fair value of the acquired shares.
To finance the acquisition and meet other commitments, the board also cleared a cash capital increase for existing shareholders at nominal value. The move will raise Qalaa’s paid-up capital to EGP 25 billion from approximately EGP 21.1 billion.
The proposed EGP 3.868 billion increase will comprise 773.536 million shares, including 588.685 million ordinary shares and 184.851 million preferred shares, at a nominal value of EGP 5 apiece. Existing shareholders will be entitled to subscribe in proportion to their ownership at the subscription date.
Beyond financing the additional ERC stake, the proceeds will be used to settle obligations owed to Arab International Bank, several Egyptian banks, and other creditors. Part of the funds will also support the initial exercise of Qalaa’s right to repurchase shares in TAQA Arabia through the acquisition of around 5% of the company’s total shares.
The company also appointed Graviton Financial Advisory to prepare an independent fair value assessment of Qalaa’s share price. The valuation will be disclosed at least five business days before the subscription period begins.
ERC produces 4.2 million tons of liquid petroleum products annually, alongside 600,000 tons of petroleum coke and sulfur. It sells its full output of liquid petroleum products to the Egyptian General Petroleum Corporation (EGPC) under a long-term contract based on global market prices. Egypt consumes around 40 million tons of liquid petroleum products each year.
