Abraaj, Citadel talks collapse

Dubai-based private equity firm Abraaj Capital said on Tuesday that it had pulled out of talks with Citadel Capital to buy a stake in its Egyptian peer.

Abraaj Capital “is no longer currently exploring a transaction with Citadel Capital, a private equity firm based in Cairo and listed on the Egyptian Exchange,” the company said in a statement to Emirates 24l7.

Quoting unnamed sources, media reports said last month that Abraaj was negotiating stake acquisition of more than a 25 per cent in the Egyptian company.

Abraaj – which is currently managing assets over $7 billion – is the largest private equity player in the Middle East region.

Abraaj Capital “had been in exploratory discussions regarding a potential transaction with Citadel Capital senior management for the past two months. However these discussions were of an initial nature to evolve a framework, deal terms and mechanics that could be workable for both parties. As no agreement has been reached to-date between the two parties, Abraaj Capital feels it is appropriate to disclose this fact to the respective stakeholders in order to quell further speculation on this matter,” the statement said.

The Dubai firm said that it could explore deal options again in the future with Citdel “should performance, deal terms and/or circumstances change.”

It said is committed to future investment opportunities in Egypt specifically, and the wider Menasa region in general.