Kaki Group Co Ltd confirmed its readiness to negotiate with the Egyptian government to gain its financial dues, according to the Group’s press statement Sunday.
This would occur rather than regain ownership of Tanta Flax and Oils Company again as one of its investments in Egypt.
Kaki Group sent seven letters to the Chemical Industries Holding Company (CIHC), affiliated with the Egyptian Ministry of Investment, and formed committee to address the dispute. Kaki Group agreed to be a party, in response to the request of the government, but the Group did not receive any response.
“The Group continues to respect the judiciary decision not to control any of the Tanta Company’s issues, or do any business, since the first juridical ruling in September 2011,” the statement read.
The statement said the Group stresses its continued claim to EGP 1bn in exchange for formally approving the delivery of the Tanta Company to the government.
The amount represents the difference between the company’s purchase price and the nearest investment zone at the moment, which is a legal and a business right recognised internationally.
“The government also denies the currency exchange rate difference, as we pumped millions of dollars in Egyptian banks to be converted to Egyptian pounds to buy the company,” added the statement. “Now the exchange rate differed, in addition to the delay in paying back the money, which means, in the language of economists, ‘stagnant money’, causing losses on the government to compensate the group”.
The group responded to the request of CIHC on Monday to send representatives to negotiate on what CIHC referred to as the “foundations of the implementation of the judicial ruling”. Despite Kaki Group’s rejection of the term, it sent three of its representatives.
The representatives met with CIHC leaders, repeating their statements regarding desire of the parties to implement the court ruling. However, no results were reached during the meeting.
The group demanded that the government to take serious practical steps to implement the law.
CIHC’s board of directors has refused Kaki’s request to pay back a compensation of EGP 1bn to the Saudi investor Sheikh Abdul Elah Kaki. The board has stated the compensation will not be more than EGP 120m, including the amount which Kaki paid by signing the contract for privatisation (EGP 83m), as well as the costs spent on development work and the implementation of the early retirement project.