OCI to return renationalised company to Egyptian government
Orascom Construction to return ownership of International Steam Boilers Company to Egyptian government, following court order on Monday
Ahram Online, Wednesday 19 Dec 2012
Workers of the Boilers celebrated the return of the company to the government after the first ruling came out in September 2011 (Photo: Mai Shaheen)
Orascom Construction Industries (OCI) said on Wednesday it would respect the court order stipulating that its subsidiary, the International Steam Boilers, would be returned to state ownership due to problems in the privatisation contract.
An Egyptian court on Monday confirmed the cancellation of the privatisation deal of the Steam Boilers Company currently owned by OCI.
The court rejected the government's appeal, contesting a September 2011 ruling that scrapped the 1994 privatisation contract of the Steam Boilers Company. The Steam Boilers Company was originally bought by a Canadian American investor, then sold to an Egyptian investor and later sold to OCI.
The ruling entails that OCI return all assets it owns of the company to the government, then OCI will receive in return all funds paid in the transaction.
"Orascom Construction Industries respects court orders and will cooperate with the government to return all equipment and machinery," OCI said in a statement to the Stock Exchange on Wednesday.
The Steam Boilers Company does not generate revenues for OCI.
In a similar case, the privatisation contract of Assiut Cement's was ordered to be cancelled and the firm returned ownership of the company to the state in September 2012. Two other companies, Shebin El-Kom Textile Company, Tanta Company for Linen and Derivatives also received similar court rulings.