Orascom Construction, a leading international engineering and construction firm led by Egypt’s wealthiest man Nassef Sawiris, has approved the acquisition of three companies for $35 million.
According to media reports, the companies include Orascom Trading, National Equipment Company and Orascom Free Zone.
The move follows an unanimous vote held at the company’s extraordinary general meeting.
Although they operate independently, Orascom Construction and the companies targeted in the acquisition share the same founder. If successful, Orascom Construction will hold 100 percent of the total share capital of the three companies.
The target companies operate an asset-light importation, distribution and maintenance business model with leading positions across multiple industries, including construction, marine, railway and agriculture.
The acquisition will allow Orascom Construction to expand its position in the services sector and expand the group’s non-EPC business. Conversely, it will also provide an ample opportunity for the acquired companies to accelerate their growth.
The board also approved a report prepared by a company acting as an independent financial advisor to assess the fair value of the target companies. The firm valued the deal at $35 million.
Founded in 1950 by late Egyptian tycoon Onsi Sawiris, Orascom Construction is an Egypt-based engineering and construction giant, with operations in the infrastructure, industrial and commercial sectors.
The company prides itself as Egypt’s first multinational corporation with a presence in the United States, Algeria, Turkey, Pakistan, Iraq, North Korea and Spain, among others.
In its last financial statement for the nine months of the year ending Sept. 30, Orascom Construction grew its bottom-line by 26 percent to $84.2 million from the $66.6 million that it recorded during the comparable period of 2020.
Its top line also grew by four percent to $2.54 billion compared to the $2.44 billion that it posted during the comparable period last year.
As of press time, Dec. 29, Orascom’s share price was trading at EGP 76 ($4.8).