Orascom Construction Industries (OCIC), Egypt’s biggest publicly traded builder, gained for the first time in four days after shareholders voted to split the company.
The shares of the Cairo-based company advanced 2 percent to 279.11 Egyptian pounds at 11:50 a.m. in Cairo, valuing the company at 57.8 billion pounds ($9.6 billion). That brought the stock’s increase this year to 39 percent. The benchmark EGX 30 Index (EGX30) retreated 0.5 percent today.
The shareholder approval will mean the separation of Orascom’s construction and fertilizer businesses. Profit from the fertilizer business surpassed that of the construction unit in 2010 and accounted for 72 percent of 2011 profit.
As separate companies, each unit will be able to “participate actively in consolidation opportunities in their respective markets,” Orascom said last month. The split will also expand their investor bases and improve liquidity, it said.
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