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Wednesday, 29 December 2021

OC shareholders nod to USD 35 mn acquisition of Sawiris-owned business

Orascom Construction (OC) will acquire 100% of an equipment import, distribution and services business that is 100% owned by the Sawiris family. The transaction is worth a total of USD 35 mn and comes after shareholders voted in favor of the move at an extraordinary general meeting on Monday (pdf). OC shareholders also approved a fair value study of the business prepared by ​​HLB for Financial Consultancies on Securities.

The business: The target entity has three subsidiaries active in equipment import, distribution and maintenance — Orascom Trading, Orascom Freezone and National Equipment Company. The company is the sole agent for more than 45 original equipment manufacturers in Egypt, including Grove, John Deere, Volvo Penta, Hitachi, and Mitsubishi Heavy Industries.

Background: OC first announced its plan to go ahead with the acquisition in October. While the business is owned by the Sawiris family, it is legally separate from OC. Shareholders who are members of the Sawiris family were set to abstain from voting, as were two board members.

What’s next? The acquisition is currently pending review by the Financial Regulatory Authority, after which the shares should be transferred, a source from OC told us.

OTHER M&A NEWS- Porto Consultancy purchased a 43.9% stake in Amer Group Holding in a EGP 369.2 mn transaction, according to Hapi Journal. Porto Consultancy bought the stakes from three shareholders.

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