Regulatory Alerts2020-01-01
Decision of the Board of Directors of the Authority No. (25) of 2020
The Financial Regulatory Authority (FRA) issued Decision No. 25 of 2020 to amend the Egyptian Exchange's listing and delisting rules regarding corporate asset disposal and acquisitions. The amended Article 43 bis mandates that listed companies obtain board approval and publish an independent fair-value study before selling fixed assets or unlisted shares representing 10% or more of their equity, while requiring Extraordinary General Assembly approval for disposing of over 50% of such assets. Additionally, revised Article 44 permits listed companies to acquire unlisted shares up to 100% of their market value with Ordinary General Assembly approval, provided the targets meet specific listing criteria and the acquirer restores free-float compliance within one month if diluted.