Cairo Economic Court handed out Raya Holding chairperson Medhat Khalil and others a fine of EGP 200,000 each, with a total of EGP 110m for the charges assigned to them all to link, and obliged them to return the value of the securities subject to the violation. The fine is considered the largest fine in the history of the Egyptian capital market, as it is the first application of the amendments to the Capital Market Law The lawsuit was filed by the Financial Regulatory Authority (FRA) against Raya's Medhat Khalil for not paying a fine. The filing states that he refused to pay an EGP 11m fine handed out after he exceeded the maximum ownership limit in Raya without making a mandatory tender offer (MTO). Earlier, the FRA had ordered Khalil to submit an MTO for Raya or sell his stake, arguing that he and related parties – wife, sons, and others – controlled a combined 42% of the company which requires a MTO. In April 2019, Raya Holding chairperson has bought a 26.7% stake of Raya Holding through his El Pharonia Real Estate Investment for EGP 314.76m in MTO.
