Chemical Industries Holding Company (CIHC), a business sector company, started a new round of negotiations with Saudi investor Abdellah al-Kahky to end the crisis of the Tanta Flax Company. Kahky had previously purchased the company before a court verdict re-nationalized it, fearing international arbitration conflicts.
Reda al-Adl, head of the CIHC, said negotiations will continue next week to discuss compromise costs, especially now that Kahky no long wants the company back.
In remarks to Al-Masry Al-Youm, Adl said the Investment Ministry proposed the two parties set a price together prior to submitting the issue to Cabinet. The costs will be paid to Kahky in return for ceding the company. He added that Kahky had yet to set the price and that the company will negotiate within specific, but undisclosed, limitations in order to minimize a potential negative impact on negotiations.
The company, according to Adl, has five different approaches that can be used to avoid international arbitration, hinting at strong Saudi-Egyptian ties and the fact that Egypt wishes to continue to attract Saudi investors.
Meanwhile, a source from the Investment Ministry said Kahky demanded LE600 million, but the ministry proposed only LE120 million, up from LE75 million after the recent evaluation of the company’s assets.
Edited translation from Al-Masry Al-Youm
