EGYPT – Orascom Investment Holding, a holding company, has sold its entire stake in Sarwa Capital Holding for Financial Investments, Beltone Securities Brokerage.
The company stated in a statement to the Egyptian Stock Exchange (EGX) that Orascom Investment has sold 350.08 million shares of Sarwa Capital, which represents its entire stake in the company by 29.25 percent.
It added that the total value of the deal amounted to LE 1.6 billion (US$100m), with an average selling price of LE 4.58 (US$0.31) per share.
EGX announced the implementation of a deal through the mechanism of large-scale deals on the shares of Sarwa Capital Holding Company for Financial Investments, for 350.08 million shares, with a total value of LE 1.6 billion (US$100m).
During the first nine months of 2020, Sarwa Capital achieved profits of LE 202.24 million (US$12.95m) during the nine months ending in September 2020, compared to profits of LE 292.22 million (US$18.71m) in the comparative period of 2019, taking into account the minority rights.
As for standalone results, the company achieved profits amounting to LE 3.72 million (US$0.24m) in the first nine months of this year, compared to profits amounting to LE 75.3 million (US$4.82m) in the comparative period last year.
This comes in light of the division of Orascom Investment Holding Company according to the method of horizontal division of the book value of the share.
Orascom Investment Holding (OIH), last year approved splitting the company into two separate entities.
The demerger saw the formation of the existing Orascom Investment Holding Company and the new Orascom Financial Holding Company.
OIH’s issued capital will be cut by reducing the nominal value of its shares and will retain its license as a company participating in the incorporation of all joint stock companies and partnerships limited by shares issuance of financial securities or by capital increase.
According to the company, the decision to demerge its businesses will allow shareholders and investors to invest in specific sectors of interest and to exit the undesired ones.
Additionally, it will attract more foreign and domestic investors, provide the opportunity for the two entities to grow and share in more investments, as well as enhancing the financial profile of the two companies.
Orascom Investment Holding SAE is a holding company that has investments in companies with operations mainly in Egypt, North Korea, Pakistan, Lebanon and other North African and Middle Eastern countries.
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