Category
🗞
NewsTranscript
00:00Welcome to this special interview that will take you from Cairo via CNBC Arabia's TV screen.
00:24Our guest in this interview is Dr. Ahmed Heikal, founder and president of Al-Qala company.
00:29Dr. Ahmed, welcome to CNBC Arabia's TV screen.
00:32Let's go back two steps.
00:35What is Al-Qala company?
00:37In all the good and bad times that Al-Qala company has gone through,
00:43until now, and what is the plan to restore Al-Qala company?
00:48Al-Qala company started in 2004.
00:52It started as a private equity money management company.
00:58Private equity.
01:01We did two big operations, and they were very successful.
01:06The first one was of ASIC company, and the second one was of Al-Masry Al-Asmat.
01:10And there was, thank God, a big profit.
01:13In 2006, we started to do a number of projects from scratch.
01:21The idea of these companies is that we continue to expand these companies,
01:28and we get profit distribution to Al-Qabita company.
01:34At the end of the day.
01:36In the past period, and in the period we are in,
01:40we preferred to reinvest this money in the companies,
01:48and we were careful not to get profit distribution.
01:53In 2008, the financial crisis happened,
01:58and we had to take loans to be able to reach these companies,
02:05and the financial importance of the repatriation, abroad.
02:08We took a loan of about 300 million dollars,
02:13which we withdrew 270 million dollars,
02:16from a group of local and international banks.
02:19When COVID hit, we asked the banks to re-schedule the loan for longer periods.
02:31We did the loan, and some banks said,
02:39No, we're not going to extend it.
02:41Instead, we want to take a loan for a period.
02:46So we suggested that they take a loan for a period,
02:55with the right to buy it back,
02:57but they said, no, we want energy.
02:59So we invested energy in the matter,
03:02and we made a loan.
03:04This is the first phase of the loan.
03:06This is the first phase of the loan.
03:07One of the local banks said,
03:09No, I'm ready to stay with you and extend the loan,
03:13and I want to do this.
03:15So he stayed with us.
03:17Some non-local foreign banks said,
03:24No, we won't be able to take assets in Egypt,
03:27and we won't be able to extend the loan.
03:32These are the two banks.
03:33These are the two banks.
03:35They said, what do you want?
03:37We want you to buy the loan from us.
03:39So the foreign banks asked for a re-evaluation of the loan,
03:45and not to get one of the assets of Al-Qala,
03:48as happened with the local banks.
03:50We told them, we're committed to extending the loan,
03:54but extend it.
03:55They said, no, we prefer to do a monetary evaluation right away.
04:03We said, okay, we're ready.
04:05But Al-Qala makes its investments in the companies below.
04:09So we said, we want this $28 million,
04:14and we'll get it,
04:16but all the contributors in Al-Qala's company benefit from it,
04:20by 7-5.
04:24So everyone who contributes to Al-Qala's company
04:30has the right to enter into the bonds,
04:35which finance the purchase of the $28 million loan.
04:40The next step is that we will take the original loan,
04:46which was purchased by the contributors.
04:49The original loan will be credited with 5 pounds of interest.
04:54The original loan, which is how much?
04:57The original loan is $230 million,
05:00but it will be credited with interest until the day of the payment.
05:04And in the history of the General Assembly,
05:08we will convert this loan into an Egyptian pound loan.
05:12So they have a loan.
05:14This loan will be credited with 5 pounds of interest.
05:19Okay?
05:21We, the Capital Partners Foundation,
05:24and all the contributors who want to join us.
05:27So you will join a General Assembly later,
05:32you will increase this amount,
05:35and it will open up in the first place in a monetary form,
05:39to all the contributors who are present in the history of the second General Assembly.
05:43To all the contributors who are present,
05:46and the people who will write my money,
05:49they are the ones who have a priority.
05:52And after that, we will clearly draw the other performance.
06:00Here, there is a clear benefit for the contributors who are present,
06:04at that time,
06:06which is today, or at that time.
06:08Why?
06:09Because there is a group of people
06:12who will increase the capital by 5 pounds.
06:15If the share price today is less than 5 pounds,
06:19and there is an increase in capital by 5 pounds,
06:22this is something for the benefit of all the contributors,
06:25we will not discuss it.
06:27This is 1000% financial financing.
06:31I am surprised that some people say that this is not for the benefit of the contributors.
06:37This is for the benefit of the contributors 1, 2, 3, and 4.
06:41This is nonsense.
06:43It would have been wrong if the price was higher than 5 pounds.
06:46But since the share price is less than 5 pounds,
06:49someone will come and buy a loan and draw it for 5 pounds,
06:53this is for the benefit of all the contributors.
06:55But Dr. Ahmed, some people see that the main contributors in the castle
06:59are the ones who benefit the most from the rebuilding process,
07:02and not the small contributors.
07:04This is available to all contributors,
07:07in proportion and proportionality.
07:09I don't know where this came from.
07:12This is clear in the speech.
07:18This is available in proportion and proportionality
07:21to the property of each contributor on May 7th.
07:27This is clear.
07:29And this is the explanation we made.
07:32The proportion of the main contributors in the company
07:35is currently 23%
07:37will increase to how much after the end of the process?
07:40Depending on how much people will contribute.
07:43I don't know how much people will contribute.
07:47This is all related to how much people will contribute.
07:55But do you expect it to exceed 50%?
07:57I don't know.
07:58I really don't know.
07:59We talked to the 4 or 5 main contributors in the castle,
08:04and these 5 will be included in the increase.
08:08They will be included in the list of contributions.
08:11We talked to several international companies
08:17to make people understand.
08:19But more than that...
08:22But do you expect that in the next general meeting,
08:25the small contributors will agree on a plan to rebuild?
08:28100%.
08:29100%.
08:30This is for the benefit of the company by 100%.
08:34No matter who will buy it.
08:37Because you will take a loan worth 230 million dollars,
08:43and you will increase the capital by 5 pounds.
08:48While the price fluctuates between 2.80 and 2.70 pounds.
08:53I don't know how much today.
08:55Today, the numbers are clear.
08:58This is accretive for the small contributors.
09:01What does it mean?
09:03This is for the benefit of the small contributors.
09:05How much loans will be left after the rebuilding?
09:08For the castle?
09:09For the Huld Castle?
09:10For the Huld Castle?
09:11Zero.
09:12No loans.
09:16We have entered a whole program.
09:21You asked me a specific question.
09:24The Huld Castle?
09:25The Huld Castle.
09:26And not the companies that are not allowed to sell.
09:29Just to be clear.
09:31Of course, we have loans for companies.
09:34We will pay 500 million dollars of loans for the rebuilding this year.
09:40250 million dollars in June and 250 million dollars in December.
09:44We are worried about the global situation.
09:54We are worried about the global situation.
09:58We have a program to reduce the amount of loans for the following companies.
10:02And the castle in a big way.
10:07After a number of things that we have announced,
10:12the revelations that we have made,
10:14the castle loans will be close to zero.
10:19These are very small things.
10:20For non-banking parties.
10:22We have some commitments for non-banking people.
10:27When do you expect to complete the Huld Castle?
10:30It is related to certain procedures.
10:37I imagine September, October, November.
10:41Before the end of the year.
10:43Some people in the market saw that this is a process of rebuying the main contributors to the company.
10:50It is not true.
10:51The truth is that everyone who has the right to buy,
10:56has a share in the ratio.
10:58For example, I can take 24% of the capital partners,
11:04as an excellent share.
11:0623% and a little bit.
11:08And this is also present in the expansion.
11:11But I don't know where this story came from.
11:16That people can't settle.
11:20I don't know where it came from.
11:23After the rebuilding process,
11:25how will this affect the financial performance of the Huld Castle,
11:29after the end of the loans on the Huld Castle?
11:31It is very positive.
11:33Today, you have $440 million that has disappeared.
11:36Whether by selling some assets,
11:39or by extending it for 10 years.
11:45This has not disappeared.
11:48Whether you bought a loan,
11:51and increased the capital with it.
11:56Any contributor must be very happy with this.
12:02Contributors also ask,
12:03will this have a positive effect on the long term,
12:06on the shares of the castle?
12:07If one day,
12:09we feel that people still don't understand,
12:17or don't want it to become a contributor,
12:21we will sell as many assets as we have,
12:24and we will buy more shares.
12:27So there could be an intention to buy more shares.
12:29Of course.
12:30This is clear and honest.
12:32But no one will complain,
12:34that they will buy more shares than they have in the market.
12:39I have been here for two years.
12:41I told you that I am warning you,
12:43that the share price is increasing.
12:45I have been here for eight quarters.
12:50I am writing this paragraph that I will read to you,
12:53to warn people,
12:55to be careful.
12:57I say,
12:59that the real value of the assets of the castle company,
13:03does not reflect the value of the shares.
13:07In view of the historical value of the assets,
13:10and in view of the impact of the demolition of the castle,
13:13without re-evaluating the assets,
13:15which reflects the increase in value.
13:17Dr. Ahmed, thank you very much for this interview.
13:19Thank you.
13:20We have reached the end of this special interview.
13:23You came from Cairo,
13:24and our guest was Dr. Ahmed Heikal,
13:26Founder and Chairman of the Castle Company Board.
13:29See you in the next episode.
13:31Goodbye.