Private equity giant Citadel Capital and the Calgary-based Sea Dragon Energy agreed to cancel a deal for the latter to buy the National Petroleum Company (NPC). The two companies had entered into serious negotiations, but the acquisition agreement was amended several times.
Citadel Capital attributed the failure to reach an agreement to ongoing domestic and international economic challenges and uncertainty over when the deal could be completed.
The agreement had given Golden Crescent, a subsidiary of Citadel Capital that owns the NPC, until August 1 to decide whether or not to sell up to 50% of its share of the North El-Maghara concession area, in addition to its 12.7% share of the South Ramadan concession area. The revenues from the sales would go to the NPC and would not enter into the settlement of capital between Golden Crescent and Sea Dragon upon concluding the deal.
Citadel Capital’s shares dropped 3.5% yesterday with a value of EGP 2.96 per share at the close of the market.
Citadel Capital’s consolidated financials suffered net losses of EGP 159.258 million in the first quarter 2012, compared to 114.219 million in net losses during the same period of 2011. The company’s stand-alone financials experienced net losses of EGP 30.524 million in the first quarter of 2012, compared to net losses of EGP 26.641 milion during the same period in the previous year.