Citadel Capital, a leading private equity firm in Middle East and Africa region, said its shareholders have fully subscribed to the EGP1.05 billion ($176 million) capital increase, adding $120 million in fresh cash to its balance sheet.

The announcement comes at the close of the second and final subscription period for a rights issue approved by shareholders and Egyptian regulators in August 2011.

“The successful close of our capital increase despite challenging global and local market conditions is ringing endorsement from key shareholders of Citadel Capital’s long-term fundamentals,” remarked Ahmed Heikal, the firm’s chairman and founder.

“Notably, our long-term Gulf investors strongly backed Citadel Capital during this rights issue. In addition, leading international institutional investors - including Western and regional funds - subscribed to Citadel Capital,” he added.

The rights issue saw shareholders subscribe to 210 million new shares (including 52.5 million preferred shares) at a par value of EGP5 each, the Citadel Capital said in a statement.

The firm now reports capital of EGP4,358.1 million distributed across 871.6 million shares, including 218 million preferred shares and 653.7 million common shares.

“This is the first of several steps that we expect will add an additional $200 million to our war chest by the end of the year, putting Citadel Capital in a robust financial position heading into 2012,' stated Heikal.

'We see this as opportunity capital: It is more than sufficient to ensure our 19 existing platform companies weather any additional economic headwinds - and in the event of an improving business climate, it provides us with the flexibility to more rapidly grow our existing portfolio or to pursue compelling new opportunities of multiple forms.'

'Throughout, we will remain very cautious,' Heikal added.

In addition, Citadel and its platform companies have raised a further $319.3 million in equity and debt since January 2011 despite ongoing regional tensions.

The firm continues to enjoy the unqualified support of several leading financial institutions including International Finance Corporation, the African Development Bank and European Investment Bank who have joined leading regional LPs in participating in Citadel Capital transactions this year.

'We see a further 12-18 months of turbulence ahead, a fact that sees us continue to manage costs at the platform and portfolio levels,' Heikal remarked.

'That said, we are optimistic: Our investments are firmly on the right side of macroeconomic trends,' he added.-TradeArabia News Service