OCI demerger plan approved

Reuters, Monday 10 Sep 2012

Investment authority backs plans by Egypt's largest listed firm to split its fertiliser and construction activities

Headquarters of Orascom
Headquarters of Orascom (Photo: Reuters)

Egyptian investment authority GAFI has approved the method Orascom Construction plans to use to value its business lines before splitting them into two companies, Orascom said on Monday.

It said it would now file documents to the Egyptian Financial Services Authority to issue shares in its fertiliser arm, the business being separated from its construction activities.
"The remaining regulatory requirements to complete the demerger are procedural in nature and are expected to be complete during the fourth quarter," it said.
Egypt's largest listed company is likely to see 85 per cent of its consolidated value split into fertilisers, with the remainder in construction. All existing debt will probably be assumed into the balance sheet of the fertiliser arm, say Cairo-based analysts Beltone Financial.
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