Sunday, Jul 17, 2011

DUBAI (Zawya Dow Jones)--Private equity firm Citadel Capital's (CCAP.CI) first-quarter loss widened as the firm struggled to exit investments and had to write down some assets against a backdrop of socio-economic unrest affecting North Africa and the Middle East.

Cairo-based Citadel Capital posted a net loss of 114.2 million Egyptian pounds ($19.2 million) for the first three months of 2011, compared with EGP33.7 million in the same period in 2010, according to results published on the Cairo bourse website.

"The post-Revolutionary period has not been easy. Citadel Capital is still in a cash-preservation posture, our previously planned IPOs remain postponed, and we continue to expect lower-than-usual fundraising momentum for the balance of the year," said the firm's chairman and founder Ahmed Heikal in an emailed statement.

Citadel earlier in July called for a meeting to approve a $175 million rights issue to shore up its finances. The firm has been struggling as it had to delay several exits and some if its investments suffer under the economic challenges Egypt faces in the wake of the ousting of its ruler. The company also hired Citigroup to advise on potential sale offers.

Heikal, however, said there was room for "cautious optimism" because of the performance of the group's non-Egyptian investments and as his name was removed from a list of individuals prohibited from traveling outside the country while there is a probe into alleged corruption, a charge Citadel has denied.

Citadel Capital said it wrote down its principal investment in upstream oil and gas platform NOPC/Rally Energy Group by 100% and its investment in the National Petroleum Company (NPC) by 50%.

The company said it remains committed to all its 19 investments and that it attracted $41.6 million in new assets under management.

Citadel shares last traded Sunday 1.1% higher at EGP5.40 in a positive overall market.

-By Nicolas Parasie, Dow Jones Newswires; +9714 446-1681; nicolas.parasie@dowjones.com

Copyright (c) 2011 Dow Jones & Co.

(END) Dow Jones Newswires

17-07-11 1151GMT