Regulatory Alerts2016-01-01
Authority Board of Directors Decision No. (54) of 2016 (Updated 2017 Version)
The Financial Regulatory Authority (FRA) of Egypt issued Decision No. (54) of 2016, updated in 2017, to exempt specific acquisition scenarios from the mandatory takeover bid requirement under Article 356 of the Capital Market Law's Executive Regulations. The decision outlines five exempted cases, including unanimous shareholder approval, state-owned holding company restructuring, cross-holding acquisitions exceeding 50% and 33% thresholds with strict asset diversification and auditor licensing conditions, treasury share purchases approved by the general assembly, and cash capital increases. It further specifies that these exemptions apply to Egyptian companies listed on the Egyptian Exchange or publicly offered, mandates publication on official websites, and assigns implementation to the Authority's relevant departments.