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GB Auto files arbitration case against Algeria

GB Auto files arbitration case against Algeria
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GB Corp
AUTO
-3.63% 5.31 -0.20

Cairo – Mubasher: Ghabbour Auto (GB Auto) has filed an arbitration case against the People’s Democratic Republic of Algeria according to the bilateral treaty concluded between Egypt and Algeria in March 1997 on the encouragement and reciprocal protection of investments, according to a bourse filing on Tuesday. 

The EGX-listed firm said these proceedings were initiated as a result of the severe damage and losses suffered by GB Auto due to the measures taken by the Algerian government against the company’s business and investments in Algeria through its 54% indirect shareholding in the capital of GBR Auto and 48.80% in the capital of GBR Services.

Both GBR Auto and GBR Services were incorporated in Algeria.

The minimum damage suffered by GB Auto is the loss of its invested capital, amounting to $24 million. The aggregate value of GB Auto’s shareholders' equity is around EGP 9.40 billion as per the financial statements of 30 September 2022.

In the first nine months (9M) of 2022, GB Auto achieved consolidated net profits of EGP 1.74 billion, a leap of 40.30% year-on-year (YoY) from EGP 1.24 billion, including minority shareholders' rights.