Shareholders in Egypt's AJWA plan boycott to force legal decision

Ahram Online, Sunday 7 Aug 2011

Shareholders in one of the country's leading food producers are eying a boycott of company products to pressure the chairman into meeting a legal demand it repurchases 28.5 million shares sold at average market price last year

Shareholders of Egypt’s leading AJWA Group for Food Industries are planning for a boycott of the company’s products both in Egypt and abroad in a bid to force non-executive chairman, Mohamed bin Issa Al-Jaber, to execute a legal ruling against him to mandatorily repurchase 28.5 million shares.

On 28 June, the Egyptian Financial Supervisory Authority (EFSA) issued a decree obligating Al-Jaber to repurchase all the shares he sold at average market price between 4 and 25 October last year. The sales meant a loss for existing shareholders.

Osama Ahmed, spokesman for the disgruntled shareholders, announced the launch of another campaign to collect 5 million shares to enable them to influence the company’s General Assembly’s coming decisions, and call for the removal of the board of directors.

The campaign will send a copy of the law suit to all bourses on which AJWA is listed.

Ahmed said that the campaign has managed to collect 1.5 million shares so far.

He stressed that shareholders would pursue their demands in a variety of ways, including open sit-ins and protests, as long as the Saudi chairman and businessman failed to follow through on EFSA’s ruling.

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