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Wednesday, 21 October 2020

OIH shareholders approve demerger, move to list OFH on Egypt’s bourse

DEMERGER WATCH- Look for Orascom Investment Holding’s focus on financial services to be clearer now that shareholders have approved the company’s horizontal demerger. The move will see OIH spin off its financial services holdings to create the separate joint stock company Orascom Financial Holding (OFH), according to an EGX filing (pdf). OIH will be relisted on the EGX after its issued capital is reduced, and the chairman will apply to list OFH on the EGX, the company said.

Who gets what? Nine companies will remain under OIH, while OFH will take over OIH’s holdings in Beltone Financial (74.5%) and Sarwa Capital (28.8%). OIH’s subsidiaries include Orascom Telecom Ventures, O Capital, and Orascom Pyramids, along with its sister Cheo Joint Venture Technology company. Both OIH and OFH will continue to be owned by the same shareholders who will hold the same pre-demerger stakes.

Why the demerger? The split, which received regulatory approval last month, is designed to improve the performance and financial positions of both companies, OIH said yesterday. The demerger will allow OIH to more clearly distinguish between the company’s investment activities and its operations in the financial services industry to allow investors to make more targeted investment decisions, it said in July.

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