Orascom led by Egypt’s richest family gains backing for OCI deal

Orascom Construction PLC, the engineering and construction company controlled by Egypt’s richest family, the Sawiris family, has secured shareholder approval for a transaction that will bring a key OCI N.V. unit fully under its control and significantly expand its capital base. 

At a general assembly meeting, shareholders backed the acquisition of a wholly owned subsidiary of OCI, according to a stock exchange filing. OCI will demerge the subsidiary, which will retain all of the group’s primary assets and liabilities. 

The transaction will be executed through a share swap, with Orascom Construction issuing new shares at a ratio of 0.46 for each OCI share. Each new share will carry a nominal value of $1 and an issuance premium of $12.79. These shares will be allocated to OCI, supplementing the 561,803 Orascom Construction shares the group already holds.

Capital hike, ADX listing approved

Shareholders also approved an increase in Orascom Construction’s issued capital to $207.44 million from $110.24 million. The increase will be executed through the issuance of 97.2 million new shares, each with a nominal value of $1 and the same $12.79 premium. 

Following the move, the total number of issued shares will rise to 207.44 million from 110.24 million. The general assembly authorized the board to allocate the new shares to OCI shareholders and to suspend related pre-emptive rights. The board, or its delegates, was also empowered to complete all steps needed to execute the transaction, including issuing and listing the shares on the Abu Dhabi Securities Exchange.

The approvals allow Orascom Construction to coordinate with regulators in the UAE and Egypt, including the Abu Dhabi Global Market, Egypt’s Financial Regulatory Authority, Misr for Central Clearing, and the Egyptian Exchange. 

Orascom Construction eyes Gulf expansion

Founded in 1976 by the late Onsi Sawiris, Orascom Construction is controlled by the Sawiris family. OS Private Trust Company holds 54.9 percent, while Egyptian billionaire Nassef Sawiris owns 42.4 percent. The company operates across the Middle East, Africa and North America, with a focus on large-scale engineering, construction and infrastructure projects.

It moved its primary listing from Nasdaq Dubai to Abu Dhabi’s ADX to widen its investor base. In December it partnered with OCI Global to create a joint infrastructure and investment platform in Abu Dhabi. The collaboration aims to increase regional projects and investment activity, focusing on infrastructure expansion and growth opportunities across the Gulf region.