Egypt has reached a final settlement agreement with former shareholders of Tanta Flax and Oil Company, ending a decade-long dispute since the company was nationalised in a landmark decision in 2011.
Under this settlement, the shareholders will transfer their stakes in Tanta Flax and Oil Company to the Chemical Industries Holding Company. Egypt’s Ministry of Finance will pay the agreed amounts to the shareholders.
The company was privatised during the Mubarak era, the government sold the company to the Saudi investor Abdallah Saleh Al-Ka’ki for EGP 83m paid in three years instalments, though it was valued at EGP 500m.
In 2011, the State Council handed down its final verdict, renationalising the company. In 2013, the Supreme Administrative Court upheld the ruling.
Egypt’s Ministerial Committee for Settlement of Investment Contracts’ Disputes approved the settlement agreement, which also received the cabinet’s approval in July.