ORASCOM Construction was a blue chip stock on the Cairo Exchange in 2013.
Forced by the previous Egyptian government administrative new regulations, and various other difficulties, it had no option but delist and operate a tactical leave off the Egyptian capital market.
And then recently it came out announcing it will instead enlist on thinly traded NASDAQ Dubai and on the Egyptian Exchange next month but only as an engineering and construction company as announced by OCI NV last Monday.
The listing comes after a demerger of ORASCOM’s engineering and construction business from the chemical division. Holland based OCI NV, the Dutch-listed parent of ORASCOM Construction Industries said that the demerger will take place on 7 March 2015 with OCI NV’s share capital $1.4 billion lighter accompanied by shareholding redistribution.
OCI NV will carry on with its Euronext Amsterdam listing as a natural gas-based fertilisers global producer and OCI will focus on investments in infrastructure concessions with its shares listed and traded on NASDAQ Dubai in US Dollars and in E Pounds on the EGX.
As a holding company that is newly formed, ORASCOM Construction will then most probably rearrange its disparate operating business units including Cairo-based Orascom, US-based Contrack and The Weitz Company into a single operator. ORASCOM Construction does own a 50% shareholding in the Belgian BESIX Group, a commercial, industrial buildings and infrastructure projects contractor based in Brussels.
A statement elaborating on this restructuration says :
“The board of directors of OCI NV believes that a successful demerger, and dual listing will hel ORASCOM Construction maintain its international profile, continue to provide access to the international capital markets to better position the company for future growth, and enable the company to continue to capitalise on its position as a leading global and regional contractor to pursue the Middle East and North Africa’s resurging construction markets.”
Orascom also said that it believed the demerger would attract additional investment for both companies and create a clearer business structure, while allowing each to pursue partnerships and joint ventures.