Citadel Capital, the leading investment company in Africa and the Middle East with US$ 9.5BN in investments under control, reported closure on a major milestone as part of its ongoing transformation process. As part of the transformation, the firm’s business model is transitioning from private equity to that of an investment company. Citadel Capital shareholders met 9 October 2013 to approve an EGP 3.64 billion share (US$ 521M) issuance at par value (EGP 5) that would see the firm’s paid-in capital rise to EGP 8.0 billion (US$1.1 billion). The proposed capital increase would be used to reach 51-100% ownership in most of its core platform companies, in particular the firm’s subsidiaries in its five core industries: Energy, Transportation, Agrifoods, Mining and Cement. “We have reached today a sale and purchase agreement (SPA) that will see Citadel Capital acquire an additional 49% stake in Sphinx Glass, a leading producer of float glass and portfolio company of GlassWorks. The selling party will be DH Investors Limited, a valued long-term co-investor of Citadel Capital,” said Citadel Capital Founder and Chairman Ahmed Heikal. “At the same time, I am pleased to announce that DH Investors Limited will simultaneously be subscribing to our new share issuance, provided the issuance receives shareholder approval at the upcoming extraordinary general meeting,” Heikal noted.
