Orascom Financial Holding and Contact Holding revealed the truth of their relationship with the electronic commerce company Capiter, which has recently been making news due to financial failures within the company after brothers Mahmoud and Ahmed Noah — the founding partners — were dismissed.
Contact Holding Company said in a disclosure to the Egyptian Exchange (EGX) that the signing of the EGP 100m financing programme with Capiter, which specialises in supporting traders and suppliers with Contact Factoring — a subsidiary of Contact Financial Holding Group — is the maximum allocated for factoring future financial rights of Capiter clients.
It added that the existing financing with Contact Factoring does not have any material impact on the credit quality of the financing portfolio of the company or on the profits of the holding in light of the existence of sufficient and necessary guarantees on both Capiter and its clients.
In related news, Orascom Financial Holding denied the existence of any investments or relationship with the start-up Capiter in response to what was raised about Orascom Financials’ association with Capiter.
Previously, the Board of Directors of Capiter Holding announced that as of 6 September Mahmoud and Ahmed Noah were removed from their executive positions as the company’s CEO and COO by a decision effective immediately.
This action follows the failure of the brothers as founding partners of the company to fulfil their obligations and executive duties towards the company over the past week and the failure to appear before representatives of the Board of Directors, shareholders, and investors during their repeated visits to the company’s headquarters last week to complete the due diligence procedures for a possible merger of the company with another entity.
The Board of Directors then appointed CFO of Capiter Maged Al-Ghazouli as interim CEO of the company until Mahmoud and Ahmed Noah attend physically and in person to meet with the Board of Directors, shareholders, and investors and allay concerns among employees, suppliers, creditors and stakeholders, while the leadership works to manage operations and continue talks with an entity that is expected to merge with the company that continues to have an interest in Capiter’s assets.
