Egyptian business tycoon Naguib Sawiris’ Beltone Financial Holding Company filed a lawsuit against the head of the Egyptian Exchange (EGX) and head of the Egyptian Financial Supervisory Authority (EFSA) in response to the repeated cancellation of trades on the company’s shares, according to former chairperson of the EGX and founder of El-Sherif Law Firm and Consultants Atef El-Sherif.
Beltone shares skyrocketed by 550% over three months and the company’s market value boosted to over EGP 4bn, before the EGX board began canceling operations and transactions on shares almost daily since late February. This occurred due to the shares’ high and “unjustified price”, according to EGX.
El-Sherif told Daily News Egypt that this caused serious damage to the reputation of the company, which impacted its shareholders, and led to the collapse of its market value.
Beltone is one of the largest financial institutions in Egypt. It owns 18 subsidiaries operating in investment, asset management, securities, and IPO coverage. Sawiris acquired Beltone in November last year for EGP 650m.
The lawsuit demands for material and moral damages that came unto the company and its shareholders, given EGX’s actions.
Beltone has a capital of EGP 325.483m, divided across 162,741,000 shares—each of a nominal value of EGP 2.