Select Exited Investments

Egyptian Fertilizers Company (EFC) Citadel Capital and a group of co-investors acquired a leading Egyptian urea fertilizer producer EFC in July 2005 with a view to create value by expanding EFC’s production capacity and to use it as a platform for a regional fertilizer play. In less than two years, the management team doubled EFC’s production capacity to 1.3 million tons per annum and positioned the fertilizer producer to pursue new ventures in Algeria, Nigeria and Libya. In March 2007, Citadel Capital was approached with an attractive proposal from a GCC-based investor to acquire 100% of EFC. Following several rounds of negotiations, Citadel Capital agreed to sell EFC in a deal worth US$ 1.4 billion in June 2007. At the time, the transaction was Egypt’s largest M&A deal and the biggest private equity sale in the Middle East. The sale yielded a Gross IRR of 96.8% and a multiple of invested capital of 3.6x.

Helwan Portland Cement Company Citadel Capital acquired control of Helwan Portland Cement Company (HPCC) in a series of transactions in late 2004 and early 2005 as part of ASEC Holding. Post-acquisition, Citadel Capital quickly worked to inject pre-identified senior management, establishing a new internal control system and restructuring the firm’s finances. In August 2005, the firm sold its 68% stake in HPCC to Suez Cement, the local subsidiary of Italcementi, at an implied enterprise value of US$ 795 million, yielding a gross IRR of 287% on the sale, equal to a gross multiple of investment of 1.9x.

ASCOM Geology & Mining ASCOM was originally the geological and mining arm of ASEC Holding, a company that was acquired by Citadel Capital and its co-investors in late 2004. Citadel Capital spun off ASCOM as a separate listed company in February 2007, allowing ASCOM’s scope to expand significantly. In just three years, ASCOM has grown to include six subsidiaries in six different markets in the MENA region. The firm made a partial exit from ASCOM in February 2007, achieving a Gross IRR of 972% and a gross multiple of investment of 10.9x. Through a series of on-market sales, Citadel Capital has reduced its shareholding in ASCOM in the first half of 2008 to 49.9% from 61.5% for total proceeds of US$ 45 million.