Dutch Court Blocks OCI-Orascom Merger Over Minority Shareholder Rights
A Dutch court has blocked OCI Global's merger with Orascom Construction due to concerns raised by minority shareholders regarding conflicts of interest and insufficient protections. The ruling highlighted potential adverse effects on minority shareholders, particularly given the limited access to the Abu Dhabi exchange for Dutch brokers. Following the decision, OCI shares rose by 12.5%, while Orascom shares increased by 5%.
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The Amsterdam Enterprise Chamber halted OCI Global's merger with Orascom Construction, initiated by minority shareholders' claims of conflicts of interest and inadequate investor protections on the ADX. The court ruled that the merger could adversely affect minority shareholders, as access to the Abu Dhabi exchange is limited for Dutch brokers.
The proposed merger involved OCI shareholders exchanging stock for approximately 97.8 million Orascom shares. The court appointed independent directors to oversee the transaction, emphasizing the need for vigilance regarding conflicts of interest due to Nassef Sawiris' influence over both companies.
OCI shares rose by 12.5% following the court's decision, while Orascom shares gained 5%. OCI is also proceeding with a vote on selling OCI Ammonia Holding to raise cash.
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