Juhayna’s share drops 7.3% after the arrest of its Chairman
The share of Juhayna Food Industries, the largest producer of dairy and bottled juices in Egypt, fell today, Wednesday, 7.3 percent to reach 6.38 pounds, after the company's chairman, Safwan Thabet, was arrested pending investigations.
Two security sources told Reuters today that the chairman of the board of directors of Juhayna was arrested from his home, in incidents that one of the sources described as "financial irregularities."
A judicial committee set up by the Egyptian government issued a decision in August 2015 to seize the money and property of the head of Juhayna due to his alleged links to the banned Muslim Brotherhood.
The main Egyptian index lost its morning gains, dropping 0.03 percent to 11,036 points.
Amr El-Alfi, head of research at Prime Securities, said, "Any negative impact that will occur on the stock will be temporary only ... Safwan Thabet is the founder of the company ... reserving it will not affect the company's activity or even the performance of the Egyptian Stock Exchange."
Juhayna had said in a statement to the Egyptian Stock Exchange that the chairman of its board of directors has been detained pending investigations and that she “does not have information about the content of the investigations and does not have any other information in this regard, and that Mr. Saif El Din Thabet is the Vice Chairman and Managing Director and has all the necessary powers and competencies. To conduct the company's business. "
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