OCI Says To Pay 1st Installment To Egypt Tax In Weeks

Orascom Construction Industries (OCIC.CA), announced on Tuesday that it will pay the Egyptian Tax Authority (ETA) ten installments during 2013- 2017 totaling EGP 7.1 billion less EGP 182 million in existing tax credits to end a dispute regarding tax claims for the years 2007 to 2010.

The payments shall start with an initial payment of EGP 2.5 billion within the coming weeks, EGP 900 million in December 2013, six equal installments of EGP 450 million and two final installments of EGP 500 million in 2017 totaling the agreed to EGP 7.1 billion.

The settlement amount was reached following months of challenging negotiations. In conjunction with this agreement, the ETA has determined that there was no tax evasion by the Company and is exonerating management and the Company from any wrongdoing related to the transaction.