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Tuesday, 17 December 2019

GAFI intervenes in October Pharma shareholder dispute

DISPUTE WATCH- GAFI intervenes in OctoberPharma shareholder dispute: The General Authority for Freezones and Investment (GAFI) has prohibited HoldiPharma Chairman Ahmed Hegazy from serving on the board of OctoberPharma due to a potential conflict of interest, according to a GAFI letter obtained by Al Mal. Acdima, which owns a 30% stake in October, had nominated Hegazy to represent the company on the board. The move was met with opposition from Emirati, Saudi, and Egyptian investors, who collectively own a 55% stake in the company, and called on the government to intervene. Concerns were raised that Hegazy’s position at HoldiPharma might constitute a conflict of interest with his potential appointment in October. GAFI has invited Acdima to nominate a new representative to the board.

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