Orascom to demerge finance and investment businesses

Orascom to demerge finance and investment businesses

30 July 2020 | Natalie Bannerman

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The board of Egypt-based Orascom Investment Holding (OIH) has approved splitting the company into two separate entities.

The demerger will see the formation of the existing Orascom Investment Holding Company and the new Orascom Financial Holding Company.

OIH’s issued capital will be cut by reducing the nominal value of its shares and will retain its licence as a company participating in the incorporation of all joint stock companies and partnerships limited by shares issuance of financial securities or by capital increase.

“The demerging company shall be owned by the same shareholders of Orascom Investment Holding Company before the date of the demerger in the same shareholding percentages of each shareholder before the demerge,” said the filing.

The nominal value of the demerged company will be EGP 0.11 ($0.0069) per share, while the nominal value of the demerging company will be EGP 0.31 ($0.019) a share.

According to the company, the decision to demerge its businesses will allow shareholders and investors to invest in specific sectors of interest and to exit the undesired ones.

Additionally, it will attract more foreign and domestic investors, provide the opportunity for the two entities to grow and share in more investments, as well as enhancing the financial profile of the two companies.