Citadel Capital Receives Binding Offer

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Citadel Capital Receives Binding Offer to Sell 100% of Sphinx Glass for US$ 112 mn

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Firm nears exitof investment instate-of-the-art glass manufacturer Sphinx Glassas part of its strategy to divest non-core assets

Citadel Capital (CCAP.CA on the Egyptian Exchange), aleading investment company in Africa and the Middle East, has received a binding offer to sell 100% of non-core portfolio company Sphinx Glass Ltd. for an equity value ofapproximatelyUS$ 112 million.

Sphinx Glass,a 200,000 ton per annum, state-of-the-art float glass production facility,began full operations in April 2010 and is today one of the largest independently operated float glass producers in the MENA region. In addition to beinga key player in the Egyptian market, Sphinx Glass is also a significant regional and international exporter. The company specializes in the production of clear and tinted float glass and online coated glassin varying thicknesses. The company recorded USD 55.78million in sales in 2013 and is currently on target to exceed its budget for the second consecutive year.

Citadel Capital will be divesting its 73.3% ownership stake in the company; the balance of the equity subject to sale in the transaction is held by co-investors.

“Sphinx Glass is one of the most technologically advanced facilities of its kind in Egypt.Witha strong management team and the proper infrastructure already in place to build a second line, the company undoubtedly has the potential to grow into a major regional exporter,” said Citadel Capital Co-Founder and Managing Director Hisham El-Khazindar.

“We are exiting our investment in the companyas part of the execution of our new strategy to divest non-core assets in a timely manner at the right valuations as we transform into an investment holding company with a narrower focus,” he added.

Citadel Capital has acquired majority stakes in most of its core subsidiaries in the energy, transportation, agrifoods, mining and cement industries following the conclusion of a capital increase to USD 1.14 billion.

The Sphinx Glass factory was designed by and operates under license of world-renowned float glass technology provider PPG Industries andwas built by a leading Italian contractor. The investment leveragesEgypt’s abundance of high-quality raw materials and the supply ofskilled labor, both of which are key elements in the production of float glass. With the distinguished geographical location of the manufacturing base  in Egypt;Sphinx Glassis well suited to serviceboth domestic as well as export markets.

Due diligence on Sphinx Glass has been completedin the past period. Subject to the finalization of a sale and purchase agreement, the transaction for the sale of 100% of Sphinx Glass is expected to close during the next two months.

The divestiture of non-core industries, the most recent of which was the US$ 22 million sale of a 66.1% stake in the Sudanese Egyptian Bank, will continue over the coming three years.

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