EGX Suspends Trading On OCI, Awaits Tax Negotiations Updates

The Egyptian Exchange’s management has decided to suspend the trading on the stocks of Orascom Construction Industries (OCIC.CA) starting from Thursday’s session until OCI responds to the EGX’s inquiries as regard to the firm’s pending dispute with the Egyptian Tax Authority (ETA).

It is worth noting that the negotiations between ETA and OCI are over EGP 14 billion ($2.7 billion) tax dues. The government says OCI owes in unpaid taxes from a 2007 deal to sell a concrete-manufacturing subsidiary to Lafarge, a French company, for EGP 66.4 billion. Orascom denies the government’s claim, saying the deal was approved under the law at the time.