OCI Parent Increases Ownership in Egypt’s Orascom Construction

The Dutch-listed parent company of Egypt’s Orascom Construction Industries (OCI) (OCIC) said on Tuesday a quarter of the remaining other shareholders in the Egyptian company had so far accepted its offer to acquire their shares.

The parent company, OCI NV, already owns about 75 percent of OCI’s Cairo-listed stock. The tender offer is likely to lead to the delisting of OCI, one of the country’s biggest companies, from the Egyptian stock exchange.

OCI NV has said its Amsterdam base gives it greater access to international capital markets.

OCI NV launched the tender in June, offering Dutch-listed shares or 255 Egyptian pounds ($36.41) in cash for each ordinary Egyptian share. The offer ends on July 28.

“As it stands, 11,568,700 shares, representing 23.05 percent (of the 50 million shares on offer) have elected to convert into OCI N.V.,” OCI NV said in a statement. Almost 3 percent had opted for the cash offer.

OCI NV had offered a cash alternative of 280 Egyptian pounds per share in January but reduced the offer in May without giving a reason. The stock traded at 248.23 pounds on Tuesday.

The original tender was held up by a tax dispute that led the government to place a travel ban on OCI’s Chief Executive Nassef Sawiris and his father Onsi. The Egyptian regulator also sought clarifications that held up the deal.

The tax dispute was settled in April when OCI agreed to pay the government 7.1 billion Egyptian pounds ($1.01 billion). The travel ban was then lifted.

Source: Reuters