Egyptian private equity firm Citadel Capital on Sunday reported a widened net loss in a first quarter hit by political turmoil, and said it expected weak fundraising momentum for the rest of 2011 The firm reported a loss for the January-to-March quarter of 114.2 million Egyptian pounds ($19.2 million), according to figures published by the stock exchange.
Citadel made a net loss of 33.7 million pounds in the same period a year earlier. Egypt's popular uprising knocked confidence in the country's economy, sent inward investment tumbling and made it harder to raise money for new industrial projects.
Citadel said last month it was in buyout talks with more than one potential strategic partner. "Citadel Capital is 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 Chairman Ahmed Heikal.
"That said, I note several developments that give us reason to ask whether cautious optimism may be in order."
Among those were regulatory approval for a $175 million capital increase and the removal of Heikal's name from a list of individuals banned from travel during a probe by prosecutors into allegations of corruption. Citadel denies the allegations.
Citadel "remains entirely committed to all of its investments across the Middle East and Africa, as underscored by our decision to make $18.4 million in new principal investments in the quarter just ended", said Heikal.
Assets under management rose 11 percent year on year to $4.1 billion, the company said, adding $41.6 million of new assets in the first quarter alone.
Citadel shares were up 1.1 percent at 0858 GMT, compared to a 0.9 percent gain by the benchmark EGX30 index.
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