Qalaa exits Egyptian investment bank

Published: February 4, 2015

Investment company sells controlling stake in Pharos Holding for an estimated EGP32mn (US$42mn).

Qalaa Holdings, the Egyptian investment company formerly known as Citadel Capital, is selling its 80% stake in investment bank Pharos Holding in a management buy-out. 

The stake will be bought by a group of investors led by Pharos Holding’s chairman and founder, Mohamed Taymour. Qalaa has not disclosed the value of the transaction but said in a statement that it put the total value of Pharos Holding at around EGP40mn, implying a sale figure of around EGP32mn (US$42mn). The transaction is expected to close at the end of February.

“The exit of Pharos is part of executing our strategy to divest non-core businesses in a timely manner at the right valuations as we narrow our focus on core subsidiaries in sectors including energy, cement, agrifoods, transportation & logistics and mining,” said Qalaa Holdings co-founder and managing director Hisham El-Khazindar.

Pharos has a strong advisory business with particular expertise in M&A, equity and debt. It is also the owner of one of Egypt’s five largest stockbrokers, Pharos Securities. Its asset management business had assets under management of EGP900mn at the end of 2014.