Citadel Capital gets LE74 million injection

Ahram Online, Sunday 19 Jun 2011

Private equity firm hit by first quarter losses gets cash boost from sale of shares as Dubai company eyes takeover

Citadel Capital Partners (CCP), the vehicle by which members of the firm’s Executive Committee hold their equity in Egyptian asset managers Citadel Capital, sold shares worth some LE74 million (US$12.45m) last week.

All proceeds from share sales were injected into Citadel Capital in the forms of loans from CCP to strengthen the firm’s cash position. Those proceeds are advanced from CCP into Citadel Capital until regulatory approvals are obtained for the planned capital increase.

As of 16 June, CCP owns approximately one third of Citadel Capital SAE shares.

In other news, Bloomberg business news reported that Dubai’s Abraaj Capital may hire Morgan Stanley as an adviser for a majority stake in Citadel Capital.

The article, which quoted anonymous sources, suggested that Citadel may hire Citigroup to advise on the sale.

The news follows rumours of a probable takeover by Abraaj, which were later denied by Citadel through an official press release to investors.

Citadel incurred a consolidated loss during 1Q2011 and announced plans to raise US$175 through a rights issue.

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