Egypt's Citadel starts talks on possible buy-out

Reuters, Wednesday 22 Jun 2011

Private equity firm is in discussions with 'more than one party' regarding the sale of controlling shares

Egyptian private equity firm Citadel Capital said on Wednesday it was in possible buy-out talks with more than one potential strategic partner.

A source familiar with the matter said this month that Dubai-based Abraaj Capital had held talks with Citadel with a view to possibly buying a stake in the company.

Citadel did not name any suitors in its statement and said the talks were with more than one party. "Early stage, verbal talks have started with more than one potential strategic investor regarding the possible sale of Citadel Capital Partners' (CCP) shares in Citadel Capital, as well as the balance of the firm's shares," it said.

"No formal contract has yet been signed," the statement said, adding that Citadel was considering appointing a major global investment bank to advise on strategic options but that no mandate had so far been issued.

CCP owns 33 per cent of Citadel Capital. There are six members of CCP who are all executive board members.

The source, speaking on 8 June, had said talks were at a very preliminary stage and no formal offer had been made.

Citadel shares were up 1 per cent at LE6.04 at 10.17 GMT. The benchmark index .EGX30 was down 0.5 per cent.

Abraaj manages assets of over US$6 billion and Citadel manages assets of $4 billion.

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