Citadel says Egypt lifts travel ban its chairman

Citadel says Egypt lifts travel ban its chairman

Travel ban lifts for chairman of private equity firm Citadel, from which UAE-based Abraaj Capital is reportedly considering buying stocks.

June 20, 2011 2:46 by p.deleon

Egypt’s public prosecutor dropped a travel ban imposed in April on the chairman of private equity firm Citadel Capital , Ahmed Heikal, the company said Reuters on Sunday.

Heikal was ordered not to travel as investigators probed corruption allegations against several business leaders and government officials after a popular uprising ousted President Hosni Mubarak in February.

Citadel stock tumbled 10 percent after the ban was announced on April 14. The shares have lost a third of their value since the start of the year.

The public prosecutor said in April that Heikal and former prime minister Atef Obeid were accused of involvement in embezzlement of public money and profiteering.

“The public prosecutor has agreed today to remove the name of Ahmed Heikal, the company’s chairman, from the list of people banned from travelling,” Citadel said in a statement.

Dubai-based Abraaj Capital has held talks with Citadel with a view to possibly buying a stake in the firm, a source familiar with the matter said last week. Abraaj’s Egypt Vice President Hisham Moussa said he was not aware of the talks. (Writing by Yasmine Saleh; editing by David Hulmes)