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Wednesday, 29 December 2021

FRA takes legal action against Speed Medical

Speed-related drama in the headlines: The Financial Regulatory Authority (FRA) has filed two lawsuits against Speed Medical (SPMD) before the Cairo Economic Court, SPMD said in a regulatory filing yesterday (pdf). An FRA official declined to get into the specifics of the lawsuits, saying the agency cannot comment about ongoing legal proceedings. We think the cases could involve the court ruling on whether SPMD violated FRA disclosure rules in announcements on plans to acquire Prime Speed Medical (which were later dropped) and ongoing plans to buy New Al Safwa Specialized Hospital.

Look for the first hearing in the case to be held on 3 January after having been earlier postponed, according to the SPMD disclosure, which said that the company was first notified of the proceedings on Monday. SPMD Chairman Mahmoud Lasheen declined to provide further comment when approached by Enterprise.

Background: SPMD recently decided to offload its 30% stake in Prime Speed amid a feud between the erstwhile partners, reversing plans to take over the entire company by acquiring 70% of Prime Speed in a share-swap. Speed Medical’s subsidiary Speed Hospitals also has ongoing plans to acquire at least 51% of Al Safwa, as well as management rights, but the transaction has been held up by a delay in obtaining health ministry approvals — leading SPMD to pay Al Safwa’s shareholders EGP 4 mn to secure an extension on the transaction’s terms.

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