OCI Says Still In Talks With Egypt Tax Authority; Trading Resumed

Orascom Construction Industries (OCIC.CA) stated that negotiations with Egyptian Tax Authority (ETA) are still ongoing, adding that the outcome of such talks will be revealed to shareholders duly.

Accordingly, the Egyptian Exchange’s management decided to resume the trading on the OCI’s stock.

Earlier on Thursday, the Egyptian bourse management has decided to suspend the trading on the OCI’s as of Thursday’s session until the latter responds to the EGX’s inquiries as regard to the firm’s pending disputes with the Egyptian Tax Authority (ETA).

It is worth noting that the negotiations between ETA and OCI are over EGP 14 billion Egyptian pounds ($2.7 billion) tax dues. The government says OCI owes in unpaid taxes from a 2007 deal to sell a concrete-manufacturing subsidiary Orascom Building Materials to Lafarge, a French company, for EGP 66.4 billion. Orascom denies the government’s claim, saying the deal was approved under the law at the time.