Egyptian contractor Orascom Construction and Euronext-listed investment firm OCI Global, companies controlled by Egyptian billionaire Nassef Sawiris, are evaluating a merger to establish a scalable infrastructure and investment platform.
The combined entity will be anchored in Abu Dubai and will have a global reach, the companies said on Monday.
The move comes just weeks after Orascom Construction listed its shares on the Abu Dhabi Securities Exchange (ADX) after delisting from Nasdaq Dubai. The company moved its offices from Dubai International Financial Centre to Abu Dhabi’s financial hub ADGM.
“OCI and Orascom Construction are exploring a [merger] structure whereby Orascom Construction would be the acquiring ADGM-incorporated and ADX-primary listed entity,” Orascom said.
OCI shareholders would then receive new Orascom Construction shares at a ratio to be determined after completion of reciprocal due diligence and relative valuation.
The deal will be subject to approval by boards and shareholders of both companies as well as final regulatory approval. OCI would subsequently be liquidated and delisted from Euronext Amsterdam, the companies added.
Orascom Construction is a contractor primarily focused on infrastructure, industrial and high-end commercial projects in the Middle East, Africa and the US. It also owns 50 per cent of Besix Group, a company specialising in construction, infrastructure and marine works.
The company, which is dual listed on the Egyptian Exchange, had a contract backlog of $9.6 billion at the end of June, with Egypt dominating the total contract value at 53 per cent, followed by the US at about 28 per cent and Saudi Arabia at 12 per cent.
Orascom said the “periods of greatest value creation” in Orascom and OCI’s history were when their businesses were combined – first in cement and later in natural gas-based industries.
“The combination will unite and enhance the companies’ financial strength, consolidating substantial capital resources and funding capabilities,” the company said.
“This strengthened platform will facilitate investment in large-scale infrastructure opportunities through multiple channels, including equity, credit, and operation and maintenance participation, while leveraging Orascom Construction’s established experience in the space.”
The mergers, the companies said, will “unlock a new phase of growth”.
Orascom Construction, which is involved in the construction of a large-scale water treatment project in Abu Dhabi with Adnoc and Taqa, has also set its sights on expanding its business in Saudi Arabia, Osama Bishai, its chief executive told The National, earlier this month.
It is currently building a 3-gigawatt power plant in the kingdom and is in discussions to start another one, Mr Bishai said.
Orascom is also in talks to construct water-treatment plants in the Arab world's largest economy. “We are focused in Saudi Arabia on essential infrastructure,” he said at the time.
Orascom Construction, whose shares rose as much as 45 per cent on its September 11 trading debut on the ADX, reported a 26.5 per cent annual increase in its net profit attributable to shareholders to $82.7 million. Its revenue for the reporting period jumped more than 32 per cent to $1.95 billion, according to its financial statement.
OCI, which has been involved with building and scaling businesses in fertilisers, ammonia, methanol, cement, and infrastructure, has returned approximately $7 billion to shareholders since 2022, it said.
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
Captain Marvel
Director: Anna Boden, Ryan Fleck
Starring: Brie Larson, Samuel L Jackson, Jude Law, Ben Mendelsohn
4/5 stars
Brief scores
Toss India, chose to bat
India 281-7 in 50 ov (Pandya 83, Dhoni 79; Coulter-Nile 3-44)
Australia 137-9 in 21 ov (Maxwell 39, Warner 25; Chahal 3-30)
India won by 26 runs on Duckworth-Lewis Method
Tom Fletcher on 'soft power'
Top tips
Create and maintain a strong bond between yourself and your child, through sensitivity, responsiveness, touch, talk and play. “The bond you have with your kids is the blueprint for the relationships they will have later on in life,” says Dr Sarah Rasmi, a psychologist.
Set a good example. Practise what you preach, so if you want to raise kind children, they need to see you being kind and hear you explaining to them what kindness is. So, “narrate your behaviour”.
Praise the positive rather than focusing on the negative. Catch them when they’re being good and acknowledge it.
Show empathy towards your child’s needs as well as your own. Take care of yourself so that you can be calm, loving and respectful, rather than angry and frustrated.
Be open to communication, goal-setting and problem-solving, says Dr Thoraiya Kanafani. “It is important to recognise that there is a fine line between positive parenting and becoming parents who overanalyse their children and provide more emotional context than what is in the child’s emotional development to understand.”
The%C2%A0specs%20
%3Cp%3E%0D%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E6-cylinder%2C%204.8-litre%20%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E5-speed%20automatic%20and%20manual%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E280%20brake%20horsepower%20%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E451Nm%20%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh153%2C00%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
Results
%3Cp%3EStage%204%3A%0D%3Cbr%3E1.%20Juan%20Sebastian%20Molano%20(COL)%20Team%20UAE%20Emirates%20%E2%80%93%203hrs%2050min%2001sec%0D%3Cbr%3E2.%20Olav%20Kooij%20(NED)%20Jumbo-Visma%20%E2%80%93%20ST%0D%3Cbr%3E3.%20Sam%20Welsford%20(AUS)%20Team%20DSM)%20%E2%80%93%20ST%0D%3Cbr%3EGeneral%20Classification%3A%0D%3Cbr%3E1.%20Remco%20Evenepoel%20(BEL)%20Soudal%20Quick-Step%0D%3Cbr%3E2.%20Lucas%20Plapp%20(AUS)%20Ineos%20Grenaders%20%E2%80%93%207%E2%80%B3%0D%3Cbr%3E3.%20Pello%20Bilbao%20(ESP)%20Bahrain%20Victorious%20%E2%80%93%2011%E2%80%B3%3C%2Fp%3E%0A
More from Neighbourhood Watch:
