OCI to list new firm's shares on exchange
Cairo, December 21, 2011
Orascom Construction (OCI) , Egypt's biggest listed company, will list the shares of its construction business on the Egyptian stock exchange in a demerger process it hopes to complete in the first quarter of 2012, it said on Wednesday.
OCI announced a plan earlier this year to separate its construction and fertiliser businesses, and in October it signed credit facilities worth $1.9 billion in October to help finance the plan.
The demerger is designed to improve the performance of both businesses, which will have separate boards of directors, OCI's chief executive officer Nassef Sawiris said in a statement.
"Each of the businesses will have a greater strategic clarity enabling their respective management teams to make decisions and allocate capital to enhance their growth.”
Under the plan, OCI would retain the fertilisers business, while the demerged firm would hold its construction business. Investors holding one share in OCI would receive an additional share in the new construction company for free.
OCI's shares would continue to trade on the Egyptian market alongside those of the new construction company, the statement said.
It plans to list the new company on the London Stock Exchange along with its own global depositary certificates.
The company expects to complete the demerger during the first quarter of 2012, after calling for an extraordinary meeting of shareholders to authorise it.
OCI needs the approval of Egypt's regulatory authorities and its shareholders before it can go ahead with the demerger.
OCI's stock was trading 0.2 per cent higher mid-session, while the benchmark index was 0.1 per cent lower. – Reuters