Cairo –  The board of directors of Orascom Investment Holding (OIH) recommended a plan to demerge the company horizontally to a specialised entity in various investments and another entity specialised in financial services.

The proposal, still pending the extraordinary general meeting's (EGM) approval, suggests that Orascom Investment Holding, the demerged company, will remain as the existing company and its issued capital will be cut by slashing the nominal value of its shares, according to a bourse disclosure on Monday.

The demerging company, under the name of Orascom Financial Holding Company, will “participate 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.”

“The demerging company shall be owned by the same shareholders of Orascom Investment Holding Company before the date of the demerger in the same shareholding percentages of each shareholder before the demerge.”

The nominal value of the demerged company will be EGP 0.11 per share, while the nominal value of the demerging company will be EGP 0.31 a share.

The demerger reasons include attracting larger investments, providing more opportunities to the demerging and demerged companies, and improving the financial situation of the two entities through the redistribution of assets and liabilities of the company.

Source: Mubasher

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