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Orascom Investment Holding’s shareholders approve demerger

Orascom Investment Holding’s shareholders approve demerger
A new company will be formed under the name of Orascom Financial Holding
Orascom Investment Holding
OIH
-3.26% 0.42 -0.01

Cairo – Mubasher: The extraordinary general meeting (EGM) of Orascom Investment Holding (OIH) approved the demerger of the company in accordance with the horizontal demerger method.

The demerger process is based on the book value of the company’s shares in accordance with the financial statements for 2019, according to a bourse disclosure on Tuesday.

Orascom Investment Holding (the demerging company), specialised in carrying out various investment activities, will continue and its issued capital will be decreased by reducing the nominal value of its shares.

Following the demerger, a new company will be formed under the name of Orascom Financial Holding (the demerged company) “to participate in the incorporation of all companies that issue financial securities or in the increase of their capital which operate in the field of all kind of financial services”.

The shareholders approved the report prepared by the Economic Performance Sector of the General Authority for Investment, determining the net equity rights of the company before the demerger at EGP 2.9 billion as the basis for the demerger, including EGP 890.25 million representing the equity rights of the demerging company and EGP 2.009 billion representing the equity rights of the demerged company.

In addition, the EGM also approved restructuring the affiliated and sister companies of the demerging Company and the demerged Company so that nine companies operating in various investment sectors will remain under the demerging company, while Beltone Financial Holding and Sarwa Capital Holding for Financial Investments in addition to the current account payable to Orascom Investment Holding will be transferred from Victoire Investment to the demerged company.