Cairo – Mubasher: Orascom Construction has sold its entire stake in its construction chemicals subsidiary to Switzerland-based Sika at a value of EGP 1.80 billion, before tax, according to a bourse disclosure.
This aligns with the EGX-listed group’s objective to extract value across its assets for allocation to growth and value-accretive areas including concessions, renewable energy, and returning capital to shareholders.
The transaction followed Sika’s global acquisition of MBCC Group, which owns a 50% shareholding in the construction chemicals unit.
Orascom Construction PLC, a UAE company listed on Nasdaq Dubai, holds 56.50% equity ownership in United Holding Company, which in turn owned the remaining 50% stake in the divested subsidiary.
The unit was a producer of specialty chemicals such as admixtures and construction products in Egypt and Algeria.
Following this divestment, MBCC Group still holds an existing portfolio across building materials and equipment services.
During the 12-month period that ended on 31 December 2022, the consolidated net profits after tax of Orascom Construction jumped to $134.30 million from $125.30 million in 2021, including minority interest.