Sawiris pays LE2B as reconciliation bill with FRA

CAIRO – 27 February 2019: Member of the Board of Directors of Beltone Financial Naguib Sawiris paid about LE 2 billion in reconciliation with the Financial Regulatory Authority (FRA) after accusing Beltone of irregularities in the IPO procedure of Sarwa Capital on the Egyptian Exchange (EGX).

The bill included LE 1.6 billion for the purchase of Sarwa Capital's 261.8 million shares at a price of LE 7.36 per share representing 30 percent of the issued share capital, and Beltone Securities will pay a deposit of LE 50 million and LE 16 million, in reconciliation with the FRA and in reconciliation with the complaints of subscribers in the public offering.

In December, The Appeals Committee of the Egyptian Financial Regulatory Authority (FRA) rejected Beltone Financial Holding's grievances against the decision to suspend the company from covering and promoting initial public offerings (IPOs) for six months and to raising its insurance value to LE 50 million.

The Grievance Committee of the Commission decided to accept Beltone's grievances' form and reject its subject.

In November, FRA decided to charge Beltone Financial with raising the insurance value to the authority to LE 50 million, after accusing Beltone of irregularities in the IPO procedure of Sarwa Capital. The board of FRA decided on Nov. 1 to suspend Beltone from covering and promoting initial public offerings (IPOs) for a six-month period.

Beltone commented on the decision by saying that the FRA’s decisions are surprising and that the company is yet to be informed of reasons for their issuance and their stipulations.

It added that its subsidiary, Beltone Securities Brokerage, continues to conduct normal business operations, adding that all of the group’s companies continue to operate in line with the aforementioned Financial Regulatory Authority (FRA) decision.

Beltone Financial operates within the diversified financial sector focusing on investment banking & brokerage.

It has 20 subsidiaries operating across Egypt, Lebanon and China. Beltone Financial is based in Cairo, Egypt and was established in May 2006.