Juhaina Food Industries, the largest producer of bottled dairy products and juices in Egypt, said the board of directors has unanimously decided to appoint the company’s vice president, Saif El Din Safwan, as acting chairman of the board.
The company said in a statement to the Egyptian Stock Exchange that its chairman had been detained pending an investigation and had no additional information.
The company stressed that the arrest of its CEO will not affect the company or its day-to-day operations.
Egypt .. Arrest of businessman Safwan Thabet, owner of Juhayna Company
The Egyptian Stock Exchange suspended trading of Juhayna’s stock in the market before receiving a statement on the formation of the board of directors.
The decision of Juhayna’s board of directors comes after two security sources told Reuters on Wednesday that Safwan Thabet, chairman of Juhayna’s board of directors, has 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 Chief Executive Officer and has all the necessary powers and competence to run the business of the company.
The Egyptian businessman is said to be related to Hassan Al-Hudhaibi, the former Muslim Brotherhood general guide who classifies Egypt as a terrorist group.
A judicial commission set up by the Egyptian government made a decision in August 2015 to seize the money and property of Juhayna’s head for his alleged links to the Brotherhood.
The businessman filed a number of legal challenges to lift the ban on the funds, but these were rejected.
Founded in 1983, Juhayna is a food company that produces milk, yogurt and juices and exports its production to markets in the Middle East, America and European countries.
The company’s stock market value is approximately 7 billion Egyptian pounds (450 million dollars).