Sunday, 22 May 2011 at 15:14, Reuters, Cairo
Egypt's financial regulator has rejected a request by Citadel Capital to raise its capital, citing reasons that included the failure of the private equity firm to explain the move adequately, according to a letter obtained by Reuters.
The regulator's letter, dated Sunday and addressed to a member of Citadel Capital's board, said the company had requested raising its issued capital a third to 4.4 billion Egyptian pounds ($739 million).
The company declined to comment.
The Egyptian Financial Supervisory Authority (Efsa) said "it has been decided not to agree to your company implementing the request from the company's board to proceed with measures for the increase". Efsa also said the decision to increase capital would have been made without consulting shareholders.
Citadel's shares were down 1.2 per cent by 1024 GMT. The main index rose 2.1 per cent.
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