Once completed, Orascom Construction PLC will hold 100% of the total share capital of the three companies
REUTERS/Amr Abdallah Dalsh
The extraordinary general meeting (EGM) of Orascom Construction PLC has approved the full acquisition of Orascom Trading, National Equipment Company, and Orascom Free Zone - Onsi Sawiris and Partners for a total cash value of $35 million.
In a filing to the Egyptian Exchange (EGX), the company revealed that the acquisitions equals to around $35 million, which includes the sale and purchase agreement (agreements) and other required legal documents.
Once completed, Orascom Construction PLC will hold 100% of the total share capital of the three companies.
It was previously announced in October that the board of directors approved a proposal to consider the acquisition of up to 100% of Orascom Trading Company, National Equipment Company, and Orascom Free Zone - Onsi Sawiris and Partners, through its subsidiaries.
The move will enable the company to build its presence in the services sector, diversifying its already varied operations in several industries including construction, marine, railway, and agriculture.
The assembly agreed on the report prepared by HLB for Financial Consultancies on Securities, as an independent financial advisor in regards to determining the fair value of the 3 companies.
Orascom Development Egypt (ODE) ranked as 42nd in Forbes ME Top 50 Real Estate Developers in MENA 2021, released earlier in December.
During the first 9 months of 2021, Orascom Construction PLC reported a 17.1% increase in consolidated net profits.
Egypt’s merger and acquisition transaction value more than quadrupled (394%) y-o-y during the first half of 2021, with 111 deals worth more than $4 billion, significantly higher than the $906 million during H1 2020 from 74 deals.
