‘Mistake’ Sees Beltone Fair Value Cut as Bourse Cancels TradesBy
Latest blow to investment bank owned by billionaire Sawiris
Ten percent gain to be erased after FinCorp adjusts valuation
Beltone Financial Holding’s adviser has cut the Egyptian investment bank’s fair value a day after submitting it to the stock exchange.
The valuation of the bank, owned by billionaire Naguib Sawiris, was reduced to 9.3 Egyptian pounds per share from 10.07 pounds in the initial report after fixing a “mistake,” FinCorp Investment Holding said in a statement posted on the bourse’s website. Beltone executives weren’t informed of any amendments or errors in the study, the company said in its own statement shortly afterward. The cut prompted the bourse to cancel all of Sunday’s trading in Beltone shares.
The amended valuation is the latest in a series of setbacks for Beltone, which since April has been locked in a dispute with market authorities that resulted in the frequent suspension and cancellation of trading in its shares. The company in June filed a lawsuit against the heads of the country’s regulator and stock exchange, requesting compensation from the bourse.
Beltone had jumped 10 percent on Sunday to 10.71 pounds, but will drop to 9.74 pounds after the cancellation.
The company’s acquisition of investment bank CI Capital was blocked this year by the market regulator, which cited an earlier violation committed by Sawiris while restructuring Orascom Telecom Media And Technology Holding. OTMT, which acquired Beltone last November, gained 3.6 percent as 89 million shares were exchanged, the most in more than two months.