Egyptian Orascom Investment Holding’s board, chaired by businessman Naguib Sawiris, has approved on Monday splitting the firm to the current Orascom Investment and the new Orascom Financial Holding Co.
In the board’s bourse statement, Orascom said the current investment company’s issued capital will be decreased through reducing the nominal values of its shares and will maintain its licence as a company participating in the incorporation of all joint stock companies and partnerships limited by shares issuance of financial securities or by capital increase.
The new company, Orascom said, will be a joint stock company subject to the Egyptian Capital Market Law 95/1992 and its executive regulations, and shared by the same shareholders of Orascom Investment Holding.
The new company targets participating in the incorporation of all companies that issue financial securities or in the increase of their capital shares that operate in financial services sector.
Orascom said the demerge provides the opportunity for shareholders and investors to invest in their desired sectors and to exit the undesired investment sectors, attract more foreign and domestic investments for the two companies, give the opportunity for the two companies to grow and share in more investments, in addition to upgrading the financial position of the two companies.
The new company will be listed in the EGX once the demerging process ends.
Under the new move, Belton Financial Holding and Tharwa Capital Financial Holding will be affiliated to Orascom Financial Holding, while nine other companies will be under Orascom Investment Holding management, according to the company.
