Egypt's financial regulator - the Egyptian Financial Supervisory Authority (EFSA) has demanded that the Orascom Construction Industries – OCI (OCIC.CA) shall complete all the legal documentation and clarifications on the splitting of the group's construction and fertilizer operations. EFSA stressed that its role in the splitting process is limited to issuing founding shares of the demerged company, as well as of the demerging company after reduction. EFSA further noted that that the splitting move shall be taken by the company's extraordinary general meeting (EGM) and endorsed by General Authority for Investment and Free Zones (GAFI). Moreover, the EFSA said the request submitted by OCI to the financial regulator was related to issuing shares of the demerging company only, which is against EGX listing rules that stipulate that shares must be issued for both demerged and demerging companies concurrently. Out of keenness on safeguarding traders and ensuring transparency, EFSA requested OCI to complete all required documentation and full relevant legal requirements in order to proceed with the split procedures. EFSA has posted such a statement on Thursday in a response to what the OCI posted Wednesday on its website as well as on the EGX trading screens. OCI had stated that it was working closely with EFSA on obtaining final approvals on the splitting of its construction and fertilizer operations, but no progress was achieved since October.
