Chemical Industries Holding Company Chairman Reda Al-Adl said that his company will finalise the assessment of Tanta Flax & Oil Company and present the report to the minister of investment within days.
The move comes as part of efforts to repay debts to Saudi Arabian investor Abdul Elah El-Kaaki.
Al-Adl said: “We did not gain control over the company legally, but we intervened only according the judicial ruling invalidating its privatization and requiring it be return to the state.”
He added that El-Kaaki had not yet submitted any claims against Egypt internationally.
Al-Adl said during a press conference on investment that a new public commissioner has been appointed to the company. The public commissioner is currently contacting workers who retired early to convince them to return to work, for the company to take advantage of their expertise while retaining existing workers.
Al-Adl added: “Operating the company once again, although backed by a judicial ruling that invalidated privatisation, is very difficult and complicated.”
He emphasised that the process of evaluating the company will be done in accordance with the standards under which it was privatised. The Ministry of Finance will pay the value of the evaluation to the investor for evacuating his party, and it is expected that the price of company sale will be less than what was previously paid.
Tanta Flax & Oil Company was privatised in 2003 and sold for $83m. The holding company had appointed a financial advisor to assess the value of the company to repay its worth to El-Kaaki, and return it legally to the ownership of the holding company as per the court ruling.
