OCI’s Deal Does Not Represent Egyptian Market Exit; Says EFG-Hermes Official

Mona Zulficar, EFG Hermes’ Board of Directors Chairperson, has negated that Orascom Construction Industries (OCIC.CA)’s recent transaction on cancelling its Global Depository Receipts (GDRs) on London Stock Exchange transferring their ownership to OCI N.V. can be a sign of exiting the Egyptian market.

Zulficar asserted that the transaction will not result in any changes to the day-to-day operations of the business in Egypt. The Group’s North Africa and Middle East headquarters will continue to be located in Cairo and employment there will be unaffected.

She explained that such transactions yield reasonable returns for the companies similar to the EFG-Hermes (HRHO.CA)’ last deal with QInvest.

Orascom Construction Industries said OCI N.V. announced on Sunday it has launched an exchange offer to acquire all of the outstanding Regulation S global depositary receipts (GDRs) of OCI in exchange for ordinary shares in OCI N.V. OCI N.V. (also referred to in this Announcement as the Company) plans to subsequently launch an ADR program on the New York Stock Exchange (NYSE).

It is expected that the foreign currency funds under the Share Exchange Offer with a Cash Alternative will be converted into Egyptian Pounds through the Central Bank of Egypt. The investment into OCI N.V. to finance the share cash alternative represents the largest foreign investment involving Egypt since the revolution, resulting in one of the largest foreign currency inflows into the country since then.