Justice Ministry rejects Medhat Khalil’s mediation request
DISPUTE WATCH- Justice Ministry rejects Medhat Khalil’s mediation request: The Justice Ministry’s dispute resolution committee has ruled that it has no subject-matter jurisdiction to mediate the ongoing dispute between Raya Holding’s Chairman Medhat Khalil and the Financial Regulation Authority (FRA), the local press reports. Khalil, who is looking to reduce or overturn an EGP 11 mn fine imposed by the FRA in connection with a mandatory tender offer, had requested that the dispute resolution committee act as the mediator. The FRA then insisted in July that its own committee should handle the issue.
Background: The FRA filed the lawsuit against the company’s chairman, Medhat Khalil, in May alleging that he failed to pay an EGP 11 mn fine handed out after he exceeded the maximum ownership limit in Raya without making an MTO. Khalil was ordered to launch the MTO last year or sell down his stake after it emerged that he and related parties controlled a combined 42% of the company — a level that triggers 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 the MTO.