Raydan Food liquidates Egypt unit

A Raydan Food branch

Raydan Food Co. announced today, Feb. 4, the liquidation of its investment in Egypt to avoid currency exchange losses.

Raydan Egypt, a 100%-owned subsidiary with a capital of EGP 50,000, will undergo this liquidation, the company said in a statement to Tadawul.

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It added that the related financial impact, which is not expected to be significant, will be reflected in the company's consolidated financial statements for the forthcoming period. However, franchising operations in Egypt will remain running.

According to data available with Argaam, Raydan Food signed on Sept. 29, 2021, a franchise contract with Al-Raya Restaurants Co. Ltd. in Egypt to transform the units of its subsidiary into franchise branches.

The contract value amounted to EGP 7 million (SAR 1.7 million), inclusive of the franchise fees of EGP 500,000 (SAR 119,400), to be paid in lump sum. This is besides EGP 800,000 (SAR 191,000) in franchise premium revenue for the first year of the contract, paired with the value of the assets owned by the subsidiary.