Shareholders of leading investment company Citadel Capital have voted recently to allow the company, which says it has $9.5 billion in investments under control, to boost capital by EGP 3.64 billion ($528 million). According to a press release, it is part of “the firm’s transformation from the largest private equity firm in Africa into the leading investment company in the region.”
Citadel is listed CCAP.CA on the Egyptian Exchange. Shareholders voted at an extraordinary general meeting (EGM) in Cairo on 20 October. The shares will be issued at par value (EGP 5) and would boost capital from EGP 4.36 bn to EGP 8.0 bn. Shareholders will participate in the share issuance on a pro-rata basis.
Citadel Capital says it will use the capital 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 plans to exit non-core investments over the coming few years as it transforms its business model to become an investment company.
Citadel Capital Chairman and Founder Ahmed Heikal said in a press release: “Approval to launch the capital increase signals clear shareholder confidence in our transformation into an investment company. The long-term holding periods permitted by the new model will allow Citadel Capital to maximize 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.”