(MENAFN- Daily News Egypt) The proceeding of demerge of Orascom Construction Industries' engineering and construction from its fertilisers and chemicals business has officially commenced, Orascom Construction Industries NV announced Monday.
In November, the company reported it will pursue a dual listing for the engineering and construction branch in Egypt and the UAE.
"Concurrently with the implementation of the demerger, Orascom Construction intends to offer new ordinary shares representing up to 15% of the shares to public retail investors," the company said in an official statement.
The construction company announced it plans to have a private stock issuance for "qualified institutional investors".
The company highlighted that the dates for the Egyptian offer will be between 1 March and 4 March.
"The demerger is expected to take place on 7 March 2015 through a $1.4bn reduction in OCI NV's share capital," the company said. "OCI NV shareholders will receive one Orascom Construction share for every two OCI NV shares they own at close of trading on 6 March 2015".
The company added, however, that announced dates are subject to change due to necessary regulatory approvals.
In a previous interview with OCI's CEO, Nassif Sawiris said that the company is encouraged by the Egyptian Regulatory Authority's push for listing rules. These create a mechanism for dual listings and the company hopes to be among the first companies to benefit from these new rules.
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