Citadel’s NPC Sale to Sea Dragon Canceled on ‘Uncertainty’

Citadel Capital SAE (CCAP), an Egyptian private equity firm, canceled a $147.5 million sale of National Petroleum Co. to Sea Dragon Energy Inc. (SDX) because of “uncertainty” about the finalization of the deal.

The sale was called off without penalty to either side, the Cairo-based company said in a filing to the Egyptian bourse today. The agreement was reached “in light of uncertainty regarding the date on which the acquisition could be completed as well as on-going economic turbulence locally and internationally,” it said in a separate e-mailed statement.

In January, Citadel said its unit Golden Crescent Investments Ltd., had agreed to sell its stake in NPC to Canada’s Sea Dragon. Financing for the deal, which was approved by the buyer’s shareholders, was already arranged for, Sea Dragon said in a separate statement.

Shares of Citadel Capital retreated for the first time in three days, losing 0.7 percent to 3.04 Egyptian pounds at 10:55 a.m. in Cairo. That values the firm at 2.51 billion pounds.

To contact the reporter on this story: Ahmed A. Namatalla in Cairo at anamatalla@bloomberg.net

To contact the editor responsible for this story: Digby Lidstone at dlidstone@bloomberg.net

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