OCI NV Cuts Cash Offer by 8.9% for Orascom Construction SharesNadine Marroushi
OCI NV reduced the cash offer to stockholders of its subsidiary, Orascom Construction Industries, by 8.9 percent as it seeks to complete a tender for the unit’s shares listed in Egypt. The stock fell.
Amsterdam-based OCI NV will pay investors 255 Egyptian pounds a share as an alternative to a stock swap, Orascom Construction said in a statement on its website today. The company had offered a cash option of 280 pounds in January.
OCI NV, which plans to relocate Orascom Industries’ shares to the Netherlands, said today it will formally proceed with filing all necessary documentation to complete the offer. Cairo-based investment bank Pharos Holding said April 30 that a revised offer won’t fall below 246.6 pounds a share, the average closing price over the past three months and the minimum required by the regulator.
OCI NV signed extensions to equity commitments made by U.S. investors including Microsoft Corp. co-founder Bill Gates’ Cascade Investment, Southeastern Asset Management and Davis Selected Advisers to fund the cash alternative to holders, it said.
Orascom Constructions, Egypt’s biggest publicly listed company that agreed on April 30 to pay about 7 billion pounds ($1 billion) over five years to settle a tax dispute, declined 2.1 percent to 240.61 pounds at 11:31 a.m. in Cairo.