Egypt's Citadel Capital looks for improvement in holdings

Reuters, Monday 29 Nov 2010

3Q losses force $4 billion private equity firm to review management strategies.

Egyptian private equity firm Citadel Capital is reconsidering the management teams of the companies it controls after it narrowed its losses in the third quarter, the company said on Monday.

"Our emphasis in the coming period will remain on ensuring platform and portfolio company business plans are fully funded (and) on ensuring that the right management teams are in place," it said in a statement.

The Cairo-based firm, which manages $4 billion in assets mainly in the Middle East and East Africa, controls 19 platform companies that in turn own stakes in other companies.

"We will focus as well on the creation of clear synergies and operational efficiencies across our porfolio to building additional value."

The company said it narrowed its third-quarter consolidated net loss to LE29.6 million from an LE 94.8 million loss in the second quarter after a recovery at one of its firms and operations beginning at others. It did not give comparison figures for the third quarter of 2009.

The smaller loss was "largely on the back of of a completed turnaround at ARESCO ... and the start of operations at multiple greenfield projects," Citadel said in a press release.

ARESCO, a turnkey contractor, had been restructured and recently secured a contract to build a cement plant in Assuit in southern Egypt, it said.

Citadel said the Takamol greenfield cement plant in Sudan had also come on stream. Takamol is controlled by Citadel platform company ASEC Holding.

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