Nassef Sawiris’ Orascom Construction sells chemicals subsidiary for $53 million

Orascom Construction, which is controlled by Egyptian billionaire Nassef Sawiris, has divested its full stake in its construction chemicals subsidiary to Sika for EGP 1.8 billion ($53 million).

This divestment to Sika was a subsequent transaction to the completion of Sika’s global acquisition of MBCC Group announced on May 2.

Orascom Construction’s share of the gross proceeds for its 28.25-percent effective stake amounts to EGP 1.8 billion.

Orascom Construction owns 56.5 percent of United Holding Company, which in turn owned 50 percent of the divested subsidiary. The other 50-percent owner was MBCC Group. The subsidiary was a producer of specialty chemicals such as admixtures and construction products in Egypt and Algeria. 

Following this divestment, the group still holds an existing portfolio across building materials and equipment services.

This divestment is part of the group’s strategy to extract value across its assets for allocation to growth and value-accretive areas including concessions, renewable energy, and returning capital to shareholders.

Mfonobong Nsehe
Mfonobong Nsehehttp://Billionaires.Africa
With over a decade of experience creating impactful narratives about Africa, Mfonobong Nsehe is one of the most recognized journalism and communications professionals on the continent. He is the editor-in-chief of Billionaires.Africa. A former Forbes Magazine contributor covering African wealth and entrepreneurship, Mfonobong conceptualized, initiated, and managed for a decade the Forbes annual ranking of Africa’s richest people. He was also the pioneer managing editor of Ventures Africa and built it into one of the continent’s most influential business news companies.

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