Last Update 21:59
Monday, 21 October 2019

Egypt's Citadel Capital plans $528 million capital hike

Citadel Capital plans a capital increase which would be the biggest in Egypt since the 2011 revolution

Reuters, Sunday 15 Sep 2013
Share/Bookmark
Views: 993
Share/Bookmark
Views: 993

Egyptian private equity firm Citadel Capital has won regulatory clearance to ask shareholders to approve a capital increase, it said on Sunday, underlining a more confident mood on local markets.

If the 3.64 billion Egyptian pound ($528 million) share issue goes ahead, it will be one of the biggest in Egypt since its 2011 revolution.

Citadel, which has struggled with losses over the past two years, originally requested regulatory approval for the share sale last year. But like many business plans during the chaotic administration of Islamist President Mohamed morsi, it did not go ahead because of bureaucratic obstacles and poor market conditions.

morsi was ousted by the army after popular protests in early July.

The company will now hold a shareholders' meeting to propose issuing 182.1 million preferred shares and 546.3 million common shares at a par value of 5 Egyptian pounds, raising its total number of shares to 1.6 billion and paid-in capital to 8 billion pounds.

The money raised would be used to boost Citadel's ownership to between 51 and 100 percent in most of the major companies in which it invests, particularly in the energy, transport, agriculture, mining and cement sectors, it said.

Other investors and partners in these firms would be given a chance to become shareholders in Citadel. Meanwhile, the company plans gradually to sell off its non-core investments over a period of at least three years.

Citadel, which says it controls investments worth $9.5 billion, posted a group net loss of 702.4 million Egyptian pounds in 2012, after a loss of 800.5 million pounds in 2011.

The company's shares were trading up 0.9 percent at 3.30 Egyptian pounds around midday on Sunday, down 13 percent since the end of last year.

 

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.