Cairo—Orascom Construction Industries (OCI) said April 30 that it has received approval from the Egyptian Financial Supervisory Authority to call for an Extraordinary General Meeting (EGM) to approve the demerger of the company’s construction business from its fertilizer business. The EGM, in which shareholders will vote on the demerger, will be held May 17. If approved, OCI will split into two separate companies – OCI Fertilizers S.A.E. and Orascom Engineering & Construction S.A.E. Nassef Sawiris will serve as chairman and CEO of OCI Fertilizers, and Salman Butt and Renso Zwiers will serve as CFO and COO, respectively. Sawiris will serve as chairman of Orascom Engineering and Construction, and Osama Bishai and Sherif Tantawy will serve as CEO and CFO, respectively. OCI explained that since 2010, the fertilizer business has grown and has overtaken the construction business in terms of overall EBITDA and net income contribution. For the full year ending Dec. 31, 2011, 69.5 percent of consolidated EBITDA and 71.9 percent of consolidated net income was contributed by the fertilizer business, while 30.5 percent of EBITDA and 28.1 percent of net income was from the construction business. OCI noted that fertilizer and construction offer distinct value propositions to investors. On a pro forma basis, OCI Fertilizers had 2011 net income of $486.1 million on revenues of $2.38 billion, with EBITDA of $976.9 million. Orascom Engineering & Construction had net income of $205.9 million on revenues of $3.22 billion with EBITDA of $443.5 million.
Transparency Across the Fertilizer Value-Chain