Qalaa Holdings has confirmed in a market statement that its stake in the Egyptian Refining Company (ERC) has decreased to 13.14% because other shareholders have underwritten additional equity.

The company explained that its indirect ownership in ERC decreased because the Egyptian General Petroleum Corporation (EGPC) and QP had underwritten the $192 million additional equity agreed in June 2012. Moreover, EGPC had underwritten $50 million in the last $70 million capital hike.

The company denied not disclosing negative news to the Egyptian Exchange (EGX) and reiterated that the ERC refinery is currently operating and is supplying petroleum products to EGPC. “ERC is selling the Pet coke resulting from the production process to leading local cement companies,” the statement added.

ERC is a $4.4 billion refinery project that produces high quality and clean-burning fuels as per international standards, with the aim of eliminating sulfur emissions and improving air quality while enhancing local supplies of petroleum products to reduce imports.

The refinery will have the capacity to produce 4.7 million tons of refined products per year, including 2.3 million tons of Euro V diesel, representing more than 30% to 40% of Egypt’s current imports, as well as 700,000 tons of jet fuel.