On Tuesday, Saudi Construction Materials Holding Company signed a contract to acquire all shares of Sphinx Glass—a subsidiary of Qalaa Holdings—for a total value of 816 million Egyptian pounds.
The announcement came during a press conference held by the two companies in Cairo this evening to mark the completion of the transfer of ownership of “Sphinx” to UAE Construction Materials Limited—a subsidiary of “Construction Materials” subsidiaries. The total value of the deal is estimated at approximately 1.3 billion pounds before excluding the debt and liabilities to be assumed by the Saudi company.
In this context, Saleh Bin Laden, Chairman of the Board of Directors of Construction Materials Holding Company, said that his company’s selection for this deal was appropriate for its expansions in Arab countries, in addition to “Sphinx” possesses regarding the latest advancements in glass manufacturing technology in Egypt.
For his part, Ahmed Heikal, founder and Chairman of the Board of Directors of Qalaa Holdings, affirmed that he looks forward to following Sphinx Glass’s developments, hoping that future expansions will address the urgent needs of the local market for solar panel manufacturing.
Engineer Moataz Al-Sawaf, Vice Chairman of the Board of Directors of Construction Materials Holding Company, said that the addition of Sphinx Glass will strengthen Construction Materials Holding Company’s position as one of the largest producers of glass and aluminum in the region.
Al-Sawaf revealed that the company intends to invest in production lines and research and development to cement Sphinx Glass’s position among the region’s most modern and largest glass producers.
Hisham El-Khazindar, co-founder and managing director of Qalaa Holdings, emphasized the importance of the deal as the largest divestment to date under the company’s strategic transformation into an investment firm.
Al-Khazindar added that Sphinx Glass is poised to continue its growth trajectory in light of the supportive macroeconomic conditions for the company’s activities, driven by increasing demand in the infrastructure sector as well as the significant boom in construction projects amid economic progress and efforts to expand urban areas in Egypt and across the African continent.
It is worth noting that Qalaa Holdings’ share of the proceeds from the sale of its 73.31% stake in Sphinx Glass amounts to approximately EGP 508 million after payment of estimated capital gains taxes.
