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Tuesday, 8 September 2020

OIH will split into two companies: One running financial services, the other with all other investments

DEMERGER WATCH- Who gets what as OIH splits in two? The Financial Regulatory Authority (FRA) has approved Orascom Investment Holding’s (OIH) plan to implement a “horizontal demerger,” it said in an EGX filing (pdf) yesterday. OIH has now officially split into two companies — OIH and Orascom Financial Holding (OFH). The move aims to clearly distinguish between the company’s operations in the financial services industry, which will be handled by OFH, and other sectors, managed by OIH, the company said in July. OIH will remain listed on the EGX with an authorized capital of EGP 2.5 bn, the regulator said in a separate filing (pdf).

Who gets what? OIH retains all of its investments in its eight subsidiaries, including Orascom Telecom Ventures, O Capital, and Orascom Pyramids, along with its sister Cheo Joint Venture Technology company. Meanwhile, OFH will get OIH’s investments in Beltone Financial (74.5%) and Sarwa Capital (28.8%).

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