IMEX committed to repaying Nile Cotton's dispute settlement amount, Ministry
Updated 9/29/2020 2:48:00 PM
ArabFinance: Minister of Public Business Sector Hisham Tawfik said IMEX International is committed to paying Nile Cotton Ginning Company’s (NCGC) dispute settlement amount, according to Al-Mal news website.
The statement comes following the contact with the Financial Regulatory Authority (FRA) over IMEX International’s acquisition offer on NCGC.
On September 28th, the Holding Company for Construction and Development (HCCD) asked Nile Cotton Ginning (NCGC) to not sell any of its assets to IMEX International. HCCD directed to halt trading on NCGC’s shares.
In early June, the ministry's dispute resolution committee decided to end the NCGC privatization crisis and fine the company a total of EGP 231.1 million in return for keeping its ownership structure unchanged.
IMEX earlier submitted a mandatory tender offer (MTO) to acquire 100% of NCGC's capital – equivalent to 52,992,500 shares – or a stake not less than 50%.
The shareholding free zone company seeks to purchase NCGC's shares at EGP 50 per each. The MTO lasted for 10 business days - from September 13th to 24th.
Nile Cotton, a subsidiary of Holding Company for International Trade and Cotton, is an Egypt-based public shareholding company that operates in the cotton and textiles sector. The unit is primarily engaged in cotton ginning, trading, and exporting.
