Shareholders of Orascom Construction have approved the $35m worth acquisition of an importing company owned by the Sawiris family.
Orascom Construction said in a disclosure sent to the Egyptian Exchange (EGX) on Tuesday, that the approval of the general assembly of shareholders of the deal was unanimously, with the exception of the Sawiris family, who abstained from voting due to their connection with the deal.
They voted on the fair value report of the deal prepared by HLP Financial Consulting Company, and the same percentage voted to proceed with the acquisition procedures.
The company’s board of directors recommended earlier, specifically on 6December, the acquisition of the Sawiris family company for $35m and called the General Assembly to vote on this recommendation on 27 December, with the Sawiris family abstaining from voting.
Orascom had given preliminary approval on 19 October to study the acquisition of a company owned by the Sawiris family specialized in importing equipment and machinery.
The company said in a disclosure to EGX that the company was founded by the late engineer Onsi Sawiris 30 or more years ago, and it was owned by the family and operates independently of Orascom Construction.
This company specializes in importing and distributing machinery and equipment across Egypt. It is the sole agent for major international companies operating in the country in the fields of construction, railways, agriculture and marine works.
The aforementioned company under the name “Orascom-Onsi Sawiris & Partners” and operates under the free zone system. Orascom Construction says that acquiring this company will enable it to expand in the services sector in Egypt.
Another disclosure sent to EGX at the time showed that the aforementioned acquisition will include three companies: Orascom Trading, the National Equipment Company, and Orascom-Onsi Sawiris and Partners.