Statement of United Electronics Company regarding Egyptian operations

The Board of Directors of United Electronics Company (eXtra) has announced that it has taken the difficult decision to discontinue indefinitely its plans to expand into the Egyptian market.

This decision was taken following a comprehensive review of the macro-economic conditions and the current unpredictability of the Egyptian market.

We understand that this decision will affect many of our Egyptian colleagues, partners and suppliers who have been eagerly anticipating this expansion. We want to express our deepest empathy for those affected by this decision and commit to ensuring a smooth transition for all parties involved.

Of the 222 affected employees, we are working hard to retain around 20% of them. This includes over half of our head-office employees, who will be retained to support our wider business. Unfortunately, our ability to relocate store employees is affected by local labour laws in our other markets.

We recognize the significant impact that this will have on many of our valued employees in Egypt. In keeping with our principles, we intend to support them throughout this transition, including offering generous severance packages to departing employees and re-location options for others where possible. We have also partnered with an executive search company to support departing colleagues in finding new employment.

Although this decision will have a significant impact, we remain committed to maintaining our position as a leading retailer in the Middle East and we remain confident in the growth opportunities for our business in our established markets.