CAIRO: Egyptian private equity firm Citadel Capital said on Sunday it would challenge a decision by the financial regulator to reject a request for a capital increase.
The Egyptian Financial Supervisory Authority said in a letter on Sunday it had refused Citadel’s request to raise its issued capital by a third to LE 4.4 billion ($739 million), citing reasons including a failure to justify the move adequately.
EFSA also said Citadel’s decision to increase its capital would have been made without consulting shareholders.
Citadel said: "EFSA has in recent months initially denied permission to a number of other applicants seeking capital increases. Appeals are then considered by EFSA as a recourse".
The regulator’s letter, dated Sunday and addressed to a member of Citadel Capital’s board, 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".
Citadel’s shares closed 1.2 percent down on Sunday, while the main index, EGX30, closed 3 percent higher.
