Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Orascom Construction to Tell Authorities It Owes No Tax on Sale

Don't Miss Out —
Follow us on:

Oct. 17 (Bloomberg) -- Orascom Construction Industries, Egypt’s largest publicly traded company, will tell the authorities next week that it has no unpaid tax, said investor relations manager Omar Darwazah.

OCI was indirectly accused by President Mohamed Mursi in an Oct. 6 speech of avoiding tax on the 8.8 billion-euros ($11.5 billion) sale of its cement unit to Lafarge SA in 2007, two months after listing it on the Cairo bourse. The company said the profit is exempted from tax under Egyptian law. OCI is also bidding for power and steel contracts in Iraq and Egypt.

“This is the first year after the 2003 war, in which you’re really seeing significant infrastructure spending in Iraq,” Darwazeh said in a telephone interview. “Iraq and Saudi Arabia are key markets for us.”

The company expects to complete the separation of its construction and fertilizer units in November, Darwazah said.

OCI’s share price rose 2.1% to 271.1 pounds at the market close in Cairo, extending a 35% rise for the year. Egypt’s EGX30 Benchmark Index has increase 61% in the same period.

To contact the reporter on this story: Nadine Marroushi in Cairo at nmarroushi@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.