Orascom demerge its construction fertilizer business

Orascom to demerge its construction and fertilizer business

4:02 AM, 22nd December 2011
Orascom to demerge its construction and fertilizer business

CAIRO, EGYPT: Orascom Construction Industries (OCI) will start the process of demerger of the company’s construction business from its fertilizer business. OCI will file an application with the Egyptian Financial Supervisory Authority (EFSA) in order to commence formally the demerger procedures and will also meet its shareholders. The demerger is expected to be completed during the first quarter of 2012.

“The demerger of our construction business from our fertilizer business will enhance the long term value creation capabilities of both businesses. Each business will have a greater strategic clarity enabling their respective management teams to make decisions and allocate capital to enhance their growth. The compensation and reward systems for management and employees will be clearly aligned to the performance of their respective businesses. Our focus is to deliver superior shareholder value and this is the key driver behind our decision,” said Nassef Sawiris, Chairman and CEO, OCI.

Upon successful completion of the contemplated demerger, each of the resulting companies will have an independent and separate board of directors compliant with prevailing corporate governance requirements. Also, Sawiris is expected to serve as Chairman and Chief Executive Officer of OCI.

© WOC News



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