The company confirmed that the arrest of its board chairman will not affect it or its daily operations.Reuters reported that the Egyptian businessman, Safwan Thabet, has been detained pending investigations, the contents or details of which have not been disclosed.
The Egyptian Stock Exchange has suspended trading in Juhayna’s shares in the market before receiving a statement regarding the formation of the board of directors.
Juhayna’s board of directors’s decision today comes after two security sources told Reuters on Wednesday that Safwan Thabet, chairman of Juhayna’s board, had been arrested from his home on charges of financial misconduct.
Saif Al-Din Safwan Thabet is the Vice-Chairman of the Board of Directors and the Managing Director and has all the necessary powers and competencies to run the company’s business.It is reported that the Egyptian businessman is related to Hassan Al-Hudhaibi, the former general guide of the Muslim Brotherhood, which Egypt classifies as a terrorist group.
A judicial committee set up by the Egyptian government issued a decision in August 2015 to seize the funds and property of the head of Juhayna due to his alleged links to the Brotherhood.
The businessman filed a number of legal appeals to lift the ban on the funds, but they were rejected.
Juhayna was established in 1983, and it is a foodstuff company that produces milk, yogurt and juices and exports its production to markets in the Middle East, America and European countries.
The value of the company on the stock exchange is approximately 7 billion Egyptian pounds (450 million dollars).