Wednesday, December 4, 2013

OCI to evaluate two subsidiaries for restructuring within the group

The board of Orascom Construction Industries (OCI), a subsidiary of OCI NV (OCI NA, Price: EUR29.60, FV: EUR27.44, Hold) appointed an independent financial adviser to evaluate two subsidiaries: Suez Industrial Development and Orascom Construction. The board aims to restructure them within the group and prepare a study of fair value for both companies. OCI owns 60.5% of Suez Industrial Development, which operates in the field of free zones infrastructure services, with an investment value of USD11 million. The company owns 99.9% of Orascom Construction, which operates in the construction segment, with an investment value of USD179 million. OCI’s management declined to comment further at this stage.