Orascom Construction Meeting, Shareholders Approve Split

By Yomna Yasser On May 17, 2012

Shareholders in Orascom Construction Industries (OCI) (OCIC.CA) have approved a plan to separate its construction and fertiliser businesses into two new companies, the group said on Thursday.

The move is designed to make the two entities more competitive, widen their investor base, make their management more flexible and improve their credit profiles.

“OCI reported a record shareholder participation rate of 84.48 percent of the company’s total outstanding shares at the extraordinary general meeting,” it said in a statement.

Egypt’s regulator, Egyptian Financial Supervisory Authority (EFSA), must approve the move before it can go ahead.

This news has been reported by Reuters.