3 October 2013       Download

Citadel Capital (CCAP.CA on the Egyptian Exchange), the leading investment company in Africa and the Middle East with US$ 9.5 billion in investments under control, announces the closure on a sale and purchase agreement (SPA) that will see Citadel Capital acquiring DH Investors Limited’s entire 49% stake in Sphinx Glass, a move that will give Citadel Capital an effective 59.7% stake in Sphinx Glass.

Sphinx Glass is a leading producer of float glass and a portfolio company of GlassWorks, Citadel Capital’s platform company in the glass manufacturing industry, operating in Africa and the Middle East. Glass Works’ roster of portfolio companies includes Misr Glass Manufacturing (MGM) and Sphinx Glass, which owns a 600-ton-per-day, 220,000-square-meter greenfield float glass production facility in Sadat City. The company began full operations in April 2010 and is a leading supplier to both export and domestic markets.

Sphinx Glass reported an 18.0% year-on-year rise in sales in the first half of 2013 to EGP 179.4 million, up from EGP 151.9 million in the same period last year. EBITDA in the first half of 2013 rose 45.8% to EGP 50.3 million, up from EGP 34.5 million in the same period last year. EBITDA margins in the first half of 2013 grew by 28% year-on-year, eclipsing a 23% margin growth during the same period in 2012. Sphinx Glass’ sales for the full year 2012 amounted to EGP 332.6 million, whereas its overall EBITA for the year reached EGP 69.3 million.

DH Investors Limited will simultaneously be subscribing to Citadel Capital’s new share issuance, provided the issuance receives shareholder approval at the upcoming extraordinary general meeting.