The global investment platform, OCI Global, which is focused on long-term value creation by way of disciplined capital allocation, along with Orascom Construction, which happens to be a leading global engineering and construction contractor, has gone on to announce that they are seeking a potential merger. The combination would go on to establish a scalable global infrastructure and investment platform, which would be anchored in Abu Dhabi, having a global reach.
OCI as well as Orascom Construction are looking forward to a structure whereby Orascom Construction is going to be the acquiring ADGM-incorporated as well as the ADX-primary listed entity. Subject to the present negotiations in terms of the structure of the potential combination, OCI shareholders will get the new Orascom Construction shares at a ratio which is going to be determined post completion of reciprocal due diligence as well as relative valuation. OCI would thereafter subsequently get liquidated and also delisted from Euronext Amsterdam.
If any transaction were to be agreed upon as well as approved by the boards of both the companies, it is going to be submitted to the shareholders of both the companies, and when it comes to the regulatory approvals, from the authorities that are relevant to the matter.
It is well to be noted that OCI Global, Orascom Construction have consistently created value throughout their cycles as well as geographies that span five continents and include the execution of landmark infrastructure transactions, the creation of global businesses, and also industrial projects. Since its inception in 1950 by Onsi Sawiris, Orascom Construction has gone on to establish a very robust brand in terms of delivering quality projects and, at the same time, building some strong repeated alliances with partners and clients throughout the world, therefore becoming a major force in worldwide Engineering, Procurement, and Construction (EPC); a player that’s ranked among the top 30 international contractors of the world; and creating a culture which has gone on to make the company an employer of choice, therefore attracting as well as retaining the best talent in an industry which is as competitive as this. Since 1999, OCI, due to its entrepreneurial investment, has gone on to develop a worldwide leading cement and nitrogen as well as methanol business and also pioneered the first large-scale greenfield blue ammonia plant in the world in the U.S.
It is well to be noted that the periods of greatest value creation when it comes to history of OCI Global, Orascom Construction is when their businesses got combined, first in cement and thereafter in natural gas-based industries, in which the companies-built scale and also delivered substantial returns. OCI, which includes Orascom Construction in its predecessor form, has gone on to distribute dividends to the shareholders of almost $22 billion and also delivered an internal rate of return (IRR) of somewhere around 39% over the period.
Going forward, the combination is all set to contribute to and also benefit from the opportunities within infrastructure, and by way of a fusion of capital, investment, and industry expertise, it looks forward to strengthening and growing a diversified global infrastructure and investment platform which is going to create recurring value throughout the cycles for times ahead.
