Egypt’s Citadel shareholders back rights issue

Shareholders in Egyptian private equity firm Citadel Capital have approved a LE1.05 billion ($176 million) rights issue, the company said in a statement on Thursday.

Shareholders voted on Wednesday to raise the firm's capital to LE4.4 billion from LE3.3 billion by issuing 210 million new shares at a par value of LE5 per share.

Citadel received approval from the Egyptian Financial Supervisory Authority on 13 July to call for a shareholders' meeting to approve the rights issue.

The company reported a widened net loss of LE114.2 million in a first quarter that was hit by political turmoil, and said it expected weak fundraising momentum for the rest of 2011.

Dubai-based Abraaj Capital said last month it was no longer seeking a deal with Citadel after reports it sought to buy a stake in the rival private equity firm.

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