CI Capital Investment Banking Concludes $ 7.3 bln OCI N.V. Transaction
CI Capital Investment Banking, a division of premier Egyptian investment bank CI Capital, announced today the conclusion of its advisory on OCI N.V.’s c. USD 7.3 billion acquisition of former parent company Orascom Construction Industries S.A.E. (OCIC).
The transaction stands as one of the largest M&A deals executed in the Middle East and North Africa region this year and one of the largest in Egypt’s history; by comparison, total M&A activity in the Middle East stood at c. USD 20 billion in 2013, according to industry figures compiled by Thomson Reuters.
CI Capital Investment Banking was the sole local financial advisor to OCI N.V. on the transaction, which saw 97.44% of OCI S.A.E. shareholders (controlling some 201,616,948 shares) accepting OCI N.V.’s mandatory tender offer to acquire up to 100% of OCI S.A.E.’s outstanding shares.
“We are delighted to have provided OCI N.V. with world-class advisory services on this key transformational transaction,” noted CI Capital Investment Banking Managing Director Hazem Badran. “The successful conclusion of this high-profile deal underscores the strength of our investment banking team, which includes globally and regionally experienced professionals with excellent transactional track records.”
“This transaction marks the fifth closing for CI Capital Investment Banking in 2013, a major milestone for the development of the franchise in the current challenging market conditions. We look forward to bringing to the market in the months and years ahead other large, sophisticated M&A and equity transactions now in our pipeline,” Badran concluded.
A total of 29,180,180 shares, representing 58.13% of the total offer size of 50,196,181 shares, have elected the cash offer. A further 15,714,488 shares, representing 31.31% of the offer size, have elected to convert their OCI S.A.E. holdings into shares of OCI N.V. The total offer size comprised the full OCI S.A.E. free float in local shares (excluding 2,019,958 shares that are part of an employee stock ownership program) and was equivalent to c. 25% of OCI S.A.E.’s total shares outstanding.
OCI N.V.’s shares outstanding now total 201,616,948 shares, including 87,333,575 shares in free float on the Amsterdam Stock Exchange, representing 43.32%. The balance of the shares continues to be held by the Sawiris family.
The remaining shares include 0.47% in Global Depositary Receipts (GDRs) listed on London Stock Exchange, 0.51% in American Depositary Receipts (ADRs) listed on New York Stock Exchange and 1.58% on the Egyptian Stock Exchange.
The completion of the transaction saw c. USD 1 billion invested and converted into Egyptian Pounds through the Central Bank of Egypt to finance the total cash elections of 29,180,180 shares. Leading US investors including Cascade Investment LLC, Southeastern Asset Management, and Davis Selected Advisers provided financing for the cash component.
CI Capital Securities Brokerage, the leading broker on the EGX, has executed the transaction.
