Qalaa (CCAP) Debt Purchase Offer

Bassel Selwanes
Modified on: Tue, 4 Jun, 2024 at 9:45 AM



This FAQ page is dynamic and will be updated as and when more information becomes available. 

What is Happening? 

Qalaa’s major shareholders have initiated a series of transactions aimed at retiring a loan plus its accrued interest amounting to $230,998,471 for $28,200,000 at a discount 

Qalaa shareholders (meeting the eligibility criteria outlined below) will be eligible to participate in the debt buyback in EGP. 

Recommended watch: Our CEO Ahmad Hammouda explains the entire transaction below.

Please note: Qalaa is holding a general assembly on May 30th, 2024 to share additional information and answer investor’s questions. 

To attend you must contact Thndr Support to freeze your Qalaa shares and provide you with a balance statement

Who Can Participate?

Shareholders as of May 27th:

 If you owned shares on this date, you can take part in the debt purchase. Participation is optional and based on how many shares you have. For example, if you own 0.1% of the company, you can buy 0.1% of the debt.

Shareholders Who Sold on May 8th & 9th

If you sold shares on these dates, you can still buy the promissory notes. Your participation will be based on the higher number of shares sold on May 8th & 9th or held on May 27th.

How do I calculate the cost of participating?

Please note this estimate may vary based on the USD/EGP exchange rate on June 2, 2024.

Your participation depends on how many shares you have. It will be around EGP 0.77 per share you own.

Example: If you have 100,000 Qalaa shares and want to participate: 

100,000 shares * EGP 0.77 = EGP 77,000. 

To participate you will need to pay EGP 77,000 

How do I Participate?

On 2 June 2024, You will receive an email from Thndr guiding you in the subscription process.

Update* 3 June 2024 : You have received a second email from Thndr with the necessary steps to complete your participation. Please check your email.

What happens after I participate?

If the debt buyback is a success, a capital increase will be expected to happen in 9 to 12 months. 

The amount you participated with in the debt buyback will be held for this duration.

How does participating benefit me as a shareholder of Qalaa?

You are getting a discount on Qalaa shares where you will end up paying around EGP 0.58. 

Watch Ahmad Hammouda explain how in the video from Minute 15:00 to Minute 22:15.

What are some risks that could impact this deal?

  • Market Risk: The value of Qalaa's shares due to market conditions, economic factors, or changes in the industry.
  • Liquidity Risk: It may be difficult to sell shares in Qalaa if there is limited liquidity in the market.
  • Regulatory Risk: Changes in regulations or government policies could impact the financial markets.
  • Company-Specific Risks: Qalaa may face specific risks related to its business operations, such as competition, management changes etc.

What happens if the debt buyback does not go through?

By June 20th, 2024, QHRI will start the transfer. Within 30 days, promissory notes will be issued, and instructions given to brokerages. If the transfer isn't done by June 20th, 2024, QHRI will refund shareholders.

What happens if the capital increase fails?

If not finalized by June 25th, 2025, Qalaa will refund the promissory notes value of $28,000,000 to QHRI, who will then refund shareholders within three months.

Important Dates: 

*Please note the following dates are subject to change, make sure you  regularly check Qalaa’s website and the EGX website for the most updated information.

May 27th: Must own shares by this date to participate.

May 30th: General assembly meeting to approve the debt purchase.

June 1st, 2024: Form will be available for those who want to participate.

June 2nd, 2024 (before market opens): The value of the debt per share will be announced.

June 2nd to June 5th, 2024: You can choose to participate during this time. Your brokerage will collect fees and send them to the Arab African Investment Bank (AAIB) with the form and declaration.

June 5th, 2024 (end of the day): AAIB will announce the amount of money received. If not enough, a second tranche may be opened.

Subscriptions will only be through your brokerage firm.

Important resources:

For more information:

Visit Qalaa's website and the EGX website for the latest dates and timelines. 

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