EK Holding sells 26% stake in Egyptian Hydrocarbon to Carbon Holdings
An Egypt Kuwait Holding subsidiary sold a 26% stake in Egyptian Hydrocarbon Company to Carbon Holdings, according to a regulatory filing. Carbon Holdings bought the stake for USD 65.2 million, the disclosure notes without adding further detail.
A source close to the transaction tells us that EKH will record a capital gain of USD 18 million on the investment, which it will recognize in its 3Q2017 financials. The exit, which we’re told will have no impact on EKH’s recurring revenues or profitability, should help make EK Holding a cleaner investment story going forward.