Bloomberg News

Citadel Capital Drops in Cairo as It Seeks to Increase Debt

October 20, 2011

Oct. 20 (Bloomberg) -- Citadel Capital SAE fell for the second time this week after the chairman of the Egyptian private equity firm said the company plans to take on more debt to strengthen the balance sheet.

The shares of the Cairo-based company retreated 1.2 percent to 3.44 Egyptian pounds at 12:06 p.m. in Cairo, paring its gain this week to 6.2 percent. The benchmark EGX 30 Index declined 0.2 percent today.

Citadel plans to increase its debt by $150 million and sell some assets to raise as much as $60 million, Chairman Ahmed Heikal said in an interview with Bloomberg television yesterday after the end of trading in Cairo.

The shares surged 5.5 percent yesterday after Citadel said it met its target of raising 1.05 billion pounds ($176 million) through a rights offer.

--Editors: Claudia Maedler, James Kraus

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

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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