Talaat Moustafa Group Holding, the biggest publicly traded real-estate company in Egypt, tumbled the most in a month as a court annulled a land sale for the company’s Madinaty project.
The shares declined 7.5 percent, the most since May 25, to 7.58 Egyptian pounds at the close in Cairo, valuing the company at 15.4 billion pounds ($2.7 billion). The stock exchange canceled all trades made before the company’s regulatory filing on the matter.
“Investors don’t know how big or how significant the news is and are just dumping the shares in panic without digesting,” said Ashraf Akhnoukh, a senior equity trader at CIBC brokerage in Cairo.
Talaat Moustafa said a private individual filed the case against the state-run New Urban Communities Authority, which sold it the land. Talaat Moustafa is not directly involved, it said. The court ruled the New Urban Communities did not abide by a bidding law that applies to the sale of public assets by government agencies. The New Urban Communities Authority will appeal the ruling, the Cairo-based Talaat Moustafa said.