The Egyptian Financial Supervisory Authority (EFSA) made the ruling while a dispute is raging over a share offer which is likely to lead to Orascom Construction Industries leaving the Egyptian stock market, against the government's wishes.
"There are new regulations that were set in place by the authority to impose a limit to the (number) of local shares that can be changed into GDR certificates," an EFSA official told Reuters on Monday. The amount transferred into GDRs, which foreign investors often use to invest in companies based in emerging markets, must not exceed a third of the company's capital, the official said, requesting anonymity. Under the ruling, which came into force on Sunday, firms must also obtain approval from an extraordinary shareholders' meeting before they can make the transaction.In a further twist, an Egyptian public prosecutor barred Orascom's chief executive Nassef Sawiris and his father Onsi on Sunday from leaving the country as part of an investigation into suspected tax evasion.
Dutch-listed parent company OCI NV, a fertilizer and construction firm, announced an acquisition deal in January, under which holders of OCI's GDRs were offered shares in OCI NV, while holders of the firm's Egypt-listed ordinary shares got the option of cash or OCI NV shares. More on: http://www.tradearabia.com/news/BANK_231700.html ;