Citadel Capital Says Main Shareholder in Talks on Stake Sale

Citadel Capital SAE said its main shareholder is holding talks with investors on the possible sale of a stake in the Egyptian private-equity firm.

The talks between Citadel Capital Partners Ltd. and “more than one potential strategic investor” are at an early stage and no agreements have been signed, the Cairo-based company said in a statement on its website today. Citadel Capital Partners owns 52.4 percent of Citadel Capital, according to data compiled by Bloomberg.

“Confirmation of the talks bodes well for Citadel shares, although the market may have already discounted the fact based on reports that have come out in the past week,” said Wafik Dawood, director of institutional sales at Cairo-based Mega Investments Securities. “So the catalyst right now would be any whispers of a valuation.”

Shares in the company rose for the first time in three days, surging as much as 5 percent after the statement. The shares closed 1.8 percent higher at 6.09 Egyptian pounds at the 2:30 p.m. close in Cairo, giving the company a market value of 4.03 billion pounds ($677 million). The benchmark EGX 30 Index (EGX30) fell 1 percent.

Abraaj Capital Ltd., the Dubai-based private equity company managing about $6.2 billion, may hire Morgan Stanley (MS) as an adviser on the possible acquisition of a stake in Citadel Capital, two people familiar with the matter said on June 16. Citadel Capital Partners may hire Citigroup Inc. to advise on the possible sale, the two people said, speaking on condition of anonymity because the talks are private.

“Citadel Capital moreover confirms that while the appointment of a major global investment bank to advise on strategic options is under consideration, no mandate has yet been issued,” the firm said in today’s statement.

To contact the reporters on this story: Alaa Shahine in Dubai at asalha@bloomberg.net; Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net

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