Leading Global Research House Crédit Suisse Initiates Coverage of Citadel Capital Shares

Citadel Capital shares are a 'hidden value play,' says Crédit Suisse, which suggests a target price of EGP 11.62 per share

Declaring the firm a “hidden value play,” leading global research house Crédit Suisse initialized coverage today of Citadel Capital shares with an “Outperform” rating and a target price of EGP 11.62 per share, suggesting a 53% upside potential from current levels.

“We are delighted that Crédit Suisse has become the first global research house to cover Citadel Capital,” said Amr El-Kadi, Head of Investor Relations at the leading private equity firm in the Middle East and Africa with US$ 8.3 billion in investments under control. “Crédit Suisse’s report clearly recognizes the soundness of our unique hybrid business model, which incorporates both our activities as a principal investor and the revenues we generate as a manager of more than US$ 2.1 billion in third-party funds as of 2Q10. We look forward to working with other leading research providers aiming to cover Citadel Capital.”

Crédit Suisse’s report notes four key growth drivers for Citadel Capital, including:

1) Differentiated exposure to key sectors including infrastructure, transportation, agriculture, consumer, and oil & gas across the Middle East and Africa that are “difficult to access through other public equities.”

2) Citadel Capital’s management team has a strong track record in executing successful exits, which saw the firm generate US$ 2.4 billion in realised value over the period 2004-2007 alone.

3) A current market price that accounts only for the value of major investments with market proxies, thus excluding both the value of the asset management component of the firm’s business model and of early-stage investments presently held at cost.

4) The potential partial exit of TAQA Arabia via IPO in the first half of 2011 (market conditions permitting), which could serve as a positive catalyst for the stock.

In addition to Crédit Suisse, Citadel Capital, an EGX 30 company, is covered by HC Securities and Investment, Pharos Holding and Pioneers Holding, all of Egypt.


Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity firm in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity-Specific Funds. The firm’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, Citadel Capital has generated more than US$ 2.5 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2005-2010, as ranked by Private Equity International).For more information, please visit www.citadelcapital.com.

For more information, please contact:

Ms. Ghada Hammouda
CMO & Head of Corporate Communications
Qalaa Holdings


Tel: +20 2 2791-4439

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