Text size:

  • Small
  • Normal
  • Large

Citadel Capital slips as talks with Abraaj fail

What's down: Citadel Capital declines as talks with Dubai-based Abraaj Capital to buy a stake in the private equity firm end.

Citadel Capital dropped to its lowest in nearly two months after talks for Dubai's Abraaj Capital to buy a stake in the Egyptian private-equity company ended without agreement.

Abraaj "is no longer currently exploring a transaction with Citadel Capital", the company said in a statement. "This does not preclude Abraaj Capital from exploring such a transaction in the future should performance, deal terms and or circumstances change."

Citadel shares fell 2.1 per cent to 4.96 Egyptian pounds on the Egyptian Exchange yesterday, the lowest price since May 26.

"The stock's reaction is related to the news on the cancellation of the deal," said Hatem Alaa, an analyst at HC Securities in Dubai.

Citadel has investments totalling US$4 billion across the Middle East and Africa in sectors such as infrastructure and building materials, transport and logistics, agriculture and consumer goods, petroleum refining, and upstream oil and gas operations.

Eighty-four per cent of the private-equity company's investments are in Egypt.

Its investments there were less productive amid the unrest that culminated in a revolution in the country this year.

On July 17, Citadel reported a first-quarter loss of 114.2 million poundsversus a loss of 33.7m pounds in the same period last year.

"This post-revolutionary period has not been easy," Ahmed Heikal, Citadel's chairman and founder, said this month. "Citadel Capital is still in a cash-preservation posture, our previously planned IPOs remain postponed, and we continue to expect lower-than-usual fund-raising momentum for the balance of the year."

All exits from investments are likely to be delayed by 12 to 18 months, given the continuing unrest in parts of the region, Mr Alaa said.

Citadel approved a rights issue of up to $175m last week to boost its balance sheet.

Subscribers under the share issue must hold their the stock for at least a year. The rights issue would be in effect two months from the date of its approval.


Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National