Citadel Capital Says on Track to Complete Sphinx Glass Exit

Big 5

Offer from Saudi’s Construction Products Holding Co. approved by Egypt’s Citadel Capital; documentation for finalization of the transaction expected to be signed by mid-June.

Citadel Capital (CCAP.CA), a leading investment company in Africa and the Middle East, said in a statement on Wednesday it expects to complete its divestiture of Sphinx Glass, a leading Egyptian producer of float glass and portfolio company of non-core platform GlassWorks, by mid-July 2014.

Saudi Arabia’s Construction Products Holding Co. (CPC) has completed due diligence and submitted a final offer to acquire 100% of Sphinx Glass at an implied enterprise value of around US$ 190 million, which translates into an equity value of US$ 112 million after deducting debt and liabilities to be assumed by the buyer.

As part of the transaction, Citadel Capital will be divesting its 73.3% ownership stake in the company, which should result in cash proceeds to the firm of c. US$ 73 million after the estimated capital gains tax; the balance of the equity subject to sale in the transaction is held by co-investors.

The final offer has been approved by Citadel Capital and GlassWorks. Citadel Capital expects documentation for the finalization and execution of the sale to be signed by mid-June and that the final transfer of shares should be completed within the following month.

Citadel Capital and its advisors look forward to working closely with CPC and its advisors to close the transaction.

Sphinx Glass is a 200,000 ton per annum, state-of-the-art float glass production facility that began full operations in April 2010 and is today one of the largest independently operated float glass producers in the MENA region.