Egypt obliges acquisition companies private to go public in bag

The Egyptian Financial Supervisory Authority has announced new changes to the rules for the listing and delisting of securities on the Egyptian Stock Exchange.

The president of the Authority, Dr. Muhammad Omran, issued resolution no. 172 of 2021 amending resolution no. 11 of 2014 of the Board of Directors of the Authority and was published in the Official Journal yesterday, Thursday.

The first article of the new amendments provided for the addition of two new numbered articles (7 bis, bis 1) and a last paragraph for article 51 and a last paragraph for article (53 bis) to the rules for listing and delisting of securities on the Egyptian market. Stock exchange.

Article 7 bis provides that the shares of the companies being acquired must be listed on the Egyptian stock exchange, and such companies are obliged to implement the offer within one month from the date of their registration with the Authority. ) of article 7) of these rules and provisions relating to these elements referred to therein art.

E (Article 7 bis 1) provided that the company or companies subject to the acquisition must be one of the companies subject to the SPAC acquisition, which comply with the rules of listing on the Egyptian Stock Exchange, provided that such companies are excluded from the items (5, 7,8) of article (7) From the rules for listing and delisting of securities on the Egyptian Stock Exchange, and the provisions relating to such items mentioned in the same article if they come from emerging or operating companies in promising sectors; As in the field of technology and innovation or in other fields approved by the Authority according to the justifications provided by the founders / sponsors.

Article 53 provides in its last paragraph that the shares of the companies subject to the acquisition of the SPAC must be canceled if the acquisition of the company or companies involved in the transaction has not been carried out within two years from the date of completion of the increase in capital of the SPAC company, or if the voting percentage has not reached the approval of the proposed acquisition of the company or companies targeted at the legal percentage required in this regard as indicated in the decision of the Authority’s Board of Directors no. 171 of 2021.

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