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Monday, 24 September 2018

Naguib’s Koryolink could repatriate profits from North Korea after reportedly getting sanctions waiver.

**#6 Naguib Sawiris’ Koryolink will reportedly be able to repatriate its profits from North Korea to Egypt now that it’s been cleared by the UN to continue operating in Pyongyang free of sanctions, sources close to the matter tell Al Mal. Sawiris’ Orascom Investment Holding (OIH, previously known as OTMT), which owns 75% of Koryolink, had petitioned the UN Security Council through the Egyptian government almost a year ago asking for an exemption from sanctions put in place to pressure North Korea into abandoning its nuclear program. Sawiris broke the news via Twitter on Thursday that the company had been cleared for business.

The scope of the exemption, however, remains to be seen, OIH said in a filing to the EGX yesterday (pdf), with promises to update the public as soon as it receives written documents from the UN with the decision. OIH said it was notified of the UN’s decision on Thursday by the Egyptian embassy in Washington, DC. OIH’s shares shot up to their daily limit yesterday on news of the exemption, according to Reuters.

Naguib has a long, difficult history with Koryolink, where he effectively lost control of the asset in 2015. North Korean hackers are alleged to have taken down OTMT’s tech systems during a shareholder dispute earlier this year.

In other company news, OIH announced yesterday that its board of directors approved the acquisition of 100% of the Nile Sugar Company, according to an EGX filing (pdf). No further details about the transaction were disclosed.

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