Citadel Capital to launch $526m share issue
Cairo, October 24, 2013
Shareholders of Citadel Capital, a leading investment company in Africa and the Middle East, approved the launch of an EGP3.64 billion ($526.9 million) share issuance to increase the capital at an extraordinary general meeting held recently in Cairo.
The share issuance will be at par value (EGP 5) and would see the firm’s paid-in capital rise to EGP8 billion from EGP4.36 billion, said a statement.
The company aims to use the issuance to reach majority ownership in most of its platform companies, in particular the firm’s subsidiaries in its five core industries – energy, transportation, agrifoods, mining and cement, it said.
It plans to exit non-core investments over the coming few years as it transforms its business model to become an investment company.
“Approval to launch the capital increase signals clear shareholder confidence in our transformation into an investment company,” said chairman and founder Ahmed Heikal.
“The long-term holding periods permitted by the new model will allow Citadel Capital to maximise value creation through a balanced portfolio that includes a healthy mix of both assets that provide stable dividend streams and that are cash generative, and others that are in high-growth phases.”
Shareholders will participate in the share issuance on a pro-rata basis, with 728.3 million newly issues shares, out of which 182 million are preferred shares and 546.3 million are common shares, said the statement.
Heikal was authorised at the EGM, in his capacity as chairman, to announce the subscription period and to call for a subsequent subscription round in the event that the share issuance is not fully subscribed in the first instance, all according to the relevant rules and regulations of the General Authority for Investment (GAFI) and the Egyptian Financial Supervisory Authority (EFSA).
The board were mandated to amend articles 6 and 7 of the company’s articles of incorporation, while taking all necessary measures to ensure the firm’s compliance with Article 27 and Executive Regulation Number 122 of the Capital Markets Law, to which the firm is subject as a company involved in establishing and raising capital for other legal entities. - TradeArabia News Service