Orascom Construction’s board greenlights $97mln capital increase

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The board members of Orascom Construction approved, on 8 December, increasing the company's issued capital to $207.44 million from $110.24 million, according to a bourse filing.

The transaction will be implemented through the issuance of new shares at a nominal value of $1 per share, in addition to offering a premium of $12.79 per share.

The dual-listed company will raise $97.20 million in capital, supporting its plan to acquire a subsidiary spun off from the Dutch company OCI Global, with an exchange ratio of 0.46 shares of Orascom Construction for every share of OCI Global.

Meanwhile, the Financial Supervisory Authority (FRA) required the company to fully disclose the transaction’s terms to shareholders and provide a summary of the fair value study. It also directed the EGX-listed firm to publish a post-acquisition report outlining the acquisition’s impact on listing requirements.

It also directed Orascom Construction to comply with capital market law rules regarding any ownership changes that may trigger a mandatory tender offer.

Earlier this month, Orascom Construction and OCI Global agreed to develop a joint Abu Dhabi-anchored infrastructure and investment platform.