Citadel Falls to Lowest Close in Week as Stake Sale Scrapped
Citadel Capital SAE (CCAP) fell to the lowest close in more than a week after the Egyptian private equity firm called off the sale of its stake in National Petroleum Co.
The shares of the Cairo-based company declined 1.7 percent to 2.91 Egyptian pounds, the lowest close since July 16. That brought the two-day loss to 4.9 percent. The benchmark EGX 30 Index retreated 1.5 percent.
The sale to Sea Dragon Energy Inc. (SDX) was called off without penalty to either side, Citadel said in a filing to the Egyptian bourse yesterday. 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.
“The stock’s negative reaction is a bit of a surprise,” said Allen Sandeep, research analyst at Cairo-based Beltone Financial Holding (BTFH), which has a hold recommendation on the shares. “NPC is already an impaired asset so the failure to sell it will not affect Citadel’s fair value.”
In January, Citadel said its unit Golden Crescent Investments Ltd. had agreed to sell its stake in National Petroleum to Canada’s Sea Dragon. Financing for the deal, which was approved by the buyer’s shareholders, was already arranged, Sea Dragon said in a separate statement.
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