Cairo Economic Court backs Juhayna blocking Baladna board representation

The Cairo Economic Court is backing EGX-listed Juhayna’s decision to block Qatari dairy rival Baladna from seeking board representation, according to a statement from Juhanya laying out the latest in the standoff between the two companies.

The court upheld Juhayna’s decision to bar Baladna’s candidate from standing for election to the company’s board of directors, citing what it said was a “violation of competition standards and anti-monopoly regulations,” the statement said. The court also noted that Juhayna’s general assembly hadn’t given the candidate the exemption they would need to stand for the board. Article 97 of the Companies Law, Juhayna said, requires that a company’s general assembly specifically allow a candidate to stand for the board if she or he is involved in a similar or competing business.

BACKGROUND- The Financial Regulatory Authority in December struck down a competitor clause in the company’s articles of association. Baladna has been the second-largest shareholder in Juhayna since 2022 with a 16% share of the company. The founding Thabet family’s Pharon Investment holds just over 50%.

Advisors: Matouk Bassiouny & Hennawy represented Juhayna in the courtroom.

Market reax: On the day of the announcement, Juhayna’s share price fell 2.1% by the time the bourse shut its doors for the weekend at EGP 28.49 per share.