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Orascom Investment's board approves demerger

Orascom Investment's board approves demerger

ArabFinance: Orascom Investment Holding's (OIH) board of directors approved a restructuring alternative by virtue of which a horizontal demerger will occur, according to the company's statement filed to the Egyptian Exchange.

The demerger will take place on the company's book value and according to its 2019 financial statements, resulting in having two companies.

The demerged company, OIH, will remain existing, while maintaining all the investments it holds in its nine subsidiaries.

It will maintain its license as a business incorporated for the purpose of “participating in the incorporation of all joint-stock companies and partnerships limited by shares through issuance of financial securities or by way of the capital increase,” the statement highlighted.

OIH will also remain listed on the Egyptian Exchange upon amending its listing details to reflect the capital reduction through decreasing the par value from EGP 0.42 to EGP 0.11 per share.

The demerging company, Orascom Financial Holding (OFH), will be a new legal entity in the form of a joint-stock business “participating in the incorporation of all companies that issue financial securities or in the increase of their capital shares which operate in the field of financial services”.

All investments belonging to or held by OIH in its affiliates or sister companies will be transferred to OFH, which will include a shareholding stake in Beltone Financial Holding and Sarwa Capital Holding for Financial Investments.

In Quarter one (Q1) of 2020, OIH registered a consolidated net profit of EGP 51.637 million, against a loss of EGP 78.863 million incurred in Q1 2019. 

Standalone net profit stood at EGP 45.279 million in Q1 2020, versus a net loss of EGP 129.573 million incurred in Q1 2019.

OIH, formerly Orascom Telecom Media and Technology Holding, is an Egypt-based holding company engaged in the telecommunications sector. The company’s activities are mainly divided into its global system for mobile communications, media and technology, cable, energy, financial, real estate, and entertainment businesses.

 

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