Egypt-based Orascom Construction today announced that it has formerly commenced proceedings to split its engineering and construction business from its fertilizer and chemicals business, as previously announced by the Board of Directors on November 6, 2014. This is in a bid to list them on the exchanges of Egypt and Dubai. The company already trades as OCI N.V. on Euronext Amsterdam.

According to a statement by the company, the de-merged construction business will be called Orascom Construction and will be dually listed on NASDAQ Dubai and the Egyptian Exchange (EGX) as a global engineering and construction company. OCI N.V. will continue to be listed on the Euronext Amsterdam as a global producer of nitrogen fertilizers, methanol and other natural gas-based chemical products.

“Concurrently with the implementation of the Demerger, Orascom Construction intends to offer new ordinary shares representing up to 15 percent of the Shares to public retail investors, and through a private placement to qualified institutional investors, as required by law in Egypt,” the statement said.

De-merger documents published by Orascom on its website showed that it is expected to take place on March 7 through a $1.4 billion reduction in the company’s share capital. Its shareholders will receive one (1) Orascom Construction share for every two (2) OCI N.V. shares they own as at close of trading on March 6. However, this is still subject to regulatory approval.

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