Egyptian authorities want more clarification on Orascom shares deal

Orascom Construction Industries will comply with a request from the Egyptian financial authorities for additional clarification of an offer by its parent company, OCI, on its ordinary shares, OCI said on Wednesday.

Egypt's biggest listed company by market capitalisation would host another shareholder meeting to discuss additional disclosures related to the transaction "and to subsequently obtain approval on the (meeting's) ... resolutions from minority shareholder", the statement said.

Once minority shareholders approve these resolutions, the result of the meeting will be ratified and an updated mandatory tender offer application will be formally filed with the Egyptian authorities, it said.

Dutch-listed OCI announced the exchange offer in January, under which holders of OCI's global depository receipts were offered shares in OCI, while holders of the firm's Egypt-listed ordinary shares got the option of cash or OCI shares.

OCI said on February 13 shareholders had approved the offer at meetings in Cairo.

OCI, an international fertiliser, engineering and construction company, said in January it had obtained commitments in excess of US$2 billion from participating investors to pay shareholders who elect to sell their OCI ordinary shares for cash.

This included $1bn from US investors, comprising Cascade Investment – which is wholly owned by Bill Gates – as well as Southeastern Asset Management and Davis Selected Advisers.

OCI chief executive Nassef Sawiris said on January 25 he expected Mr Gates and the other US investors to own up to 12 per cent of the company.

* Reuters