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Sunday, 26 May 2019

FRA files lawsuit against Raya’s Medhat Khalil for not paying fine

DISPUTE WATCH- FRA files lawsuit against Raya’s Medhat Khalil for not paying a fine: Regulators have filed a lawsuit against Raya Holding Chairman Medhat Khalil, alleging he has failed to pay an EGP 11 mn fine handed out after he exceeded the maximum ownership limit in Raya without making a mandatory tender offer (MTO), Al Mal reported. The case could see Khalil subject to a fine and could also mean that the Financial Regulatory Authority (FRA) withholds a request from Raya to issue securitization bonds, the story claims.

Background: The FRA had ordered Khalil at the end of last year to submit an MTO for Raya or sell down his stake, arguing that he and related parties controlled a combined 42% of the company — a level of control that triggers the requirement for an MTO under securities regulations. Khalil bought 26.7% (56.919 mn shares) of Raya Holding through his El Pharonia Real Estate Investment at a cost of EGP 314.76 mn in a mandatory tender offer (MTO).

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