TMG Shares 7% Down As Judges Recommend Halt to Madinaty Deal

Shares in Egyptian real estate group Talaat Moustafa Group (TMG) (TMGH.CA) slipped 7 percent on Sunday after a panel of judges said a court should cancel a 2011 ruling that had settled a damaging dispute over the company’s flagship development.

The court battle, over the sale of state land near Cairo for TMG’s $3 billion Madinaty development, sparked a crisis in Egypt’s property sector, a vital source of jobs and investment for the wider economy.

The company’s shares, which had soared 60 percent in 2012 on hopes that its worst problems were over, were suspended shortly after the start of trading when the sharp drop took them beneath a stock exchange trading limit.