Citadel Capital Did Not Acquire Helwan Portland Cement from Government of Egypt

Citadel Capital (CCAP.CA on the Egyptian Exchange) issued the following statement today

1. In September 2001, the Arab Swiss Engineering Company acquired from the Public Enterprise Sector a c.75% stake in HPCC through an affiliate company then known as Al-Ahram Cement. The Arab Swiss Engineering Company was at the time 49% owned by Omar Amin Roshdy Gamei (since deceased) and 51% was owned by other cement companies.

2. Upon the death of Mr. Omar Amin Roshdy Gamei on 14 August 2004, his heirs appointed the investment bank UBS to manage the sale of their shares in the Arab Swiss Engineering Company.

3. On 9 December 2004, approximately three years after Helwan Portland Cement Company was privatized, Citadel Capital — through Al-Wataniya Trade and Development, owned fully by Citadel Capital — purchased the full stake in Arab Swiss Engineering Company that was at the time owned by heirs of Mr. Omar Amin Roshdy Gamei.

4. Subsequently Citadel Capital purchased all outstanding shares in Arab Swiss Engineering Company – a total of 50% – from other shareholders. These included:

a. On 8 March 2005, Citadel Capital bought a 10% stake then held by ASEC Cement.
b. On 19 September 2005, Citadel Capital acquired a 10% stake from Portland Cement Co. (a subsidiary of Italcementi) (at EGP 318.93 per share)
c. On 19 September 2005, Citadel Capital purchased a 10% stake from Suez Cement (also owned by Italcementi) (at EGP 326.43 per share).
d. On 22 September 2005, Citadel Capital acquired a 10% stake from Al-Qawmiya Cement Co. (at EGP 348 per share).
e. On 13 October 2005 the final 10% was acquired from Alexandria Cement (a subsidiary of Cimpor) (at EGP 348 per share).

5. As is clear from the above: Citadel Capital did not acquire Helwan Portland Cement Company from the Public Enterprise Sector, but rather through its acquisition of Arab Swiss Engineering Company.

6. Moreover, Citadel Capital did not exist as a firm when Helwan Portland Cement Company was privatized. Citadel Capital was formed on 13 April 2004, while Helwan Portland Cement Company was sold to Arab Swiss Engineering Company in September 2001 (above).

—Ends—

For more information, please contact:

Ms. Ghada Hammouda
Head of Corporate Communications
Citadel Capital (S.A.E.)

g...@qalaaholdings.com (click to reveal this email)

Tel: +20 2 2791-4439 • Fax: +20 22 791-4448
Mobile: +20 16 662-0002