Orascom Construction to list in Dubai, Cairo after OCI demerger
The Amsterdam-listed OCI begins proceedings for March 7 demerger of its building and chemicals businesses
The Amsterdam-listed OCI NV plans to list its construction arm in Dubai and Cairo, as part of a demerger of its building and chemicals businesses.
The demerged construction business will be called Orascom Construction and be dually listed on the Nasdaq Dubai and Egyptian Exchange, the company said in a statement.
The board of directors said it believed the demerger, scheduled to take place on March 7, and the establishment of Orascom Construction would benefit OCI NV and its stakeholders.
Shareholders in OCI NV will receive one Orascom Construction share for every two OCI NV shares they own at the close of trading on March 6, the company said in a statement.
OCI NV will continue to be listed on the Euronext Amsterdam exchange as a global producer of nitrogen fertilisers, methanol and other natural-gas-based chemical products.
By creating two separately listed companies offering distinct investment propositions, the board hopes to streamline the shareholder base, it said.
“This should serve to attract a wider investor base in each company’s shares and benefit liquidity in such listed shares,” the company explained in a statement.
“It also allows for a better understanding of each company’s business, prospects and the impact of sector-focused events on its performances. It provides greater flexibility for each business to manage its own resources and pursue strategic options appropriate to their markets.”
