Arab Finance – News – Financial control has not set price for Citadel Capital

He explained that the Authority neither approved nor determined the ratings of the companies, but that it declined the compatibility of the valuation methodology with the standards that it adopted and that what was raised to determine the fair price of the action came from a misunderstanding of his statement. Financial Advisor

Statement of the General Supervisory Authority A fair value mechanism for Citadel Capital shares at 6.34 LE per share has caused confusion in the capital market over the last two days , revealing the lack of recognition by the Authority of the independent financial adviser of a subsidiary of Citadel. The company, in its statement on Thursday, objected to the use of the financial advisor appointed by the Citadel as a method of "discounting future cash flows" in the valuation of Egyptian company refining, instead of adopting the revised book value on the basis of "The company has not yet started operating and has no history of performance that can be used to establish appropriate badumptions to achieve fair value. " The statement adds that the difference in revaluation differences would be reduced from 3.13 pounds to 3.21 pounds.

stated that the valuation of Citadel Capital, excluding Egypt Refining, is close to 4.46 EGP, adding that the start of refining operations in Egypt should help eliminate all the financial risks that the company might face in the future.

Beam investment, the financial advisor has the h in the use of the valuation method that he deems appropriate, emphasizing that the cash flow method is appropriate in the case of the castle, because the Egyptian refining is already in place and future flows should be ignored.

He noted that financial advisor

Adel, financial badyst at Beltone Financial Holding, estimates that the Egyptian Refining share will not exceed EGP 5, according to the independent financial advisor, based on the expected returns of its new joint venture with the government.

Pricing at book value The project has badets and is already in place, and the pilot operation is expected to begin in a few months.

The Egyptian Financial Supervisory Authority (EFSA) asked Citadel Capital at the end of last April, The company has appointed RSM Misr Financial Consulting Office to take over the task.

The report of RSM Egypt stated that the net worth of the Egyptian refinery company Citadel is LE 9.37 billion. , Compared to a book value of 3.6 billion pounds.

The Head of Sa "The value of the Egyptian Refining Company is between 6 and 7 pounds per share, in contrast to Citadel Capital's investments in the rest of the business, mainly Arab Energy.

Expected Earnings of the Egyptian Refining Project are between 200 The General Petroleum Corporation (GPC) is among its largest shareholders The project is expected to provide 5.5 million tons of solar energy per year to the state, and the company receives $ 200 per ton.

Significantly reduce its losses in the first quarter of 2018 to reach LE 118 million, against 1.3 million pounds Yard, recorded losses in the fourth quarter of the previous year and 383 million pounds in the first quarter of the same year, supported by a significant decline in spending.

Varos pointed out that the main concern of the company is the p Postponement ossibility Egypt Refining operations, again, and therefore preferred to issue a neutral recommendation on the stock until further clarification on the refinery.

According to the consolidated financial statements for the first quarter of this year, the completion rate of the refinery project 97.2% at the end of June 2018 compared with 96.9% at the end of April 2018 and is currently undergoing a test The mechanical and commercial start is planned for 2019.