Citadel Capital sees 'strong' interest in Egypt food, transport
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Wed January 25, 2012 11:45 am

EGYPT. Citadel Capital's Chairman Ahmed Heikal, whose private equity firm has more than US$9 billion in investments, sees “strong” interest from foreign investors in Egypt’s food, transport, and distribution companies.

“Egypt has more than 80 million citizens, they still need to eat,” Heikal, who is attending the World Economic Forum in Davos, Switzerland, told Bloomberg in an e-mailed response to questions.

“The businesses that serve them still need effective transport and logistics solutions. We still need domestic refining capacity. Household and industry alike still need to be hooked up to the natural gas distribution grid.”

Egypt’s foreign direct investment plunged to US$375.5 million in the first nine months of 2011 from US$5.7 billion a year earlier, according to the most recent central bank data.

Seven weeks of elections have failed to allay tensions between the activists who ousted President Hosni Mubarak and the military council that took power from him. Protesters are calling for mass rallies tomorrow, the anniversary of the start of the uprising.

Tourist arrivals fell 33% last year, while international reserves are at the lowest level since March 2005. Egypt formally requested a $3.2 billion loan from the International Monetary Fund on January 16 to help it support the economy. 

Citadel Capital’s funds control companies investing in 15 countries including Egypt, Kenya, Sudan and South Africa in industries ranging from food to transport, mining, cement and energy.

The company raised 1.05 billion Egyptian pounds (US$173.9 million) in a capital increase from its regional co-investors last year. It also raised US$234 million in equity and debt for its railway investment in Kenya and Uganda, in addition to US$150 million from the U.S. Overseas Private Investment Co.

“Opportunities to create value as a private equity investor are still very much there, particularly when your investments are in the right side of macro trends,” Heikal said. “It is in sectors such as these that we see strong interest” from international private equity investors, he said.

Citadel Capital shares, listed in Cairo, gained 4.3% this year, trailing the 14.2% increase in Egypt’s benchmark EGX 30 Index.

The Cairo-based company said January 9 one of its funds agreed to sell its stake in National Petroleum Co. (9937) Egypt Ltd. to Calgary, Canada-based Sea Dragon Energy Inc. (SDX) for US$147.5 million.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: April 17, 2014
KUWAIT. According to a newly released report by Kuwait Finance House Research, the global sukuk market saw a modest volume of US$31.14 billion in new sukuk issuances in 1Q2014. This volume represents a drop of 9.82% compared to US$34.53 billion worth of issuances in 1Q13.
date:Posted: April 16, 2014
INTERNATIONAL. The WGC pointed out that the Chinese bank savings amount to US$7.5 trillion but only about US$300 billionn is allocated to gold, signifying the potential for gold demand to grow as Chinese wealth climbs.
date:Posted: April 16, 2014
UAE. "A similar drop to 2013 is unlikely. Those who wanted to get out of gold did, and the rest of 2014 will probably be a year of sideways trading."
SAUDI ARABIA. The GCC said in a statement that foreign ministers of the six-member body had met in Riyadh for a comprehensive review of measures used to implement foreign and security policies.
dhgate