Hisham El Khazindar, founding partner and Managing Director of Citadel Capital, said his company agreed with some of its partners in subsidiaries that the latter will use the proceeds of selling their stakes in such subsidiaries in Citadel’s EGP 6.3 billion capital increase.
In an exclusive with CNBC, the top official explained that those partners will subscribe to Citadel’s secondary offering by EGP 5 per share, in return of transferring their equities in the subsidiaries to Citadel.
Citadel (CCAP.CA) will use the capital hike proceeds in boosting its stakes in five main segments; energy, cement, food, logistics and mining.
Citadel Capital board had invited shareholders to attend an extraordinary general meeting (EGM) on Wednesday, October 9, 2013 to discuss the proposed EGP 3.6 billion capital increase through the issuance of 728.4 million shares at par value of EGP 5.0/share.
Shareholders will also look into rebranding the company to reflect conversion into a holding investment company
Meanwhile, the Egyptian Financial Supervisory Authority (EFSA) had approved a request submitted by Citadel Capital to discuss increasing issued and paid-in capital by EGP 3.641 billion at EGP 5 par value through issuing 182,093,750 preferred shares and 546,281,250 common shares, as well as increasing authorized capital to EGP 9 billion from EGP 6 billion, in addition to amending articles of incorporation accordingly