Daily News Egypt learned that the General Authority for Investment and Free Zones (GAFI) has called for a general assembly meeting of Pepsi Bugshan Investment Company, which owns Pepsi-Cola, on 23 May to vote on dismissing the company’s board of directors.
The first company carries out manufacturing operations, while the second company specializes in distribution operations.
The sources added that the authority decided to call for an ordinary general assembly headed by a representative of the administrative authority to consider voting to remove the board of directors at the headquarters of the General Authority for Investment and Free Zones in Nasr City.
The sources indicated that PepsiCo representatives will abstain from voting in the general assembly, and only the minority shareholder in Pepsi Bugshan Investment Company will have the right to vote.
The closely related sources added that the authority’s decision came after a minority shareholder in Pepsi Bugshan Investment Company, who owns about 20% of the company, submitted a request to the General Authority for Investment and Free Zones to inspect the company.
The request included that the Board of Directors manages the company without referring to the General Assembly, and does not present the business results report or budgets to the General Assembly.
It is noteworthy that the ownership structure of Pepsi Bugshan Investment is distributed by 80% in favor of PepsiCo Light BV International, and 20% in favor of a Dutch company owned by a Saudi shareholder.
A high-ranking source from PepsiCo Egypt, who refused to disclose a name, said that the aim of calling the general assembly would be to consider the report prepared by the committee of the Investment Authority.
He added to Daily News Egypt that the company is determined to invest and expand in the Egyptian market, stressing that the decision of the General Authority for Investment is related to Pepsi Bugshan Investment Company.