OCI Fertilizer Group
Cairo, Egypt / 1 June, 2010 09:15 AM
OCI Finalizes the Acquisition of Royal DSM N.V's Agro and Melamine
Businesses
Orascom Construction Industries (OCI) confirmed today that the
acquisition of Royal DSM N.V's Agro and Melamine businesses has been
finalized. As of today, all regulatory and legal procedures have been
completed and the European Union Commission has approved the
transaction on May 25th. Financial closing was reached on May 31st.
Since the initial announcement of the transaction in March, several
important developments have taken place:
Interim New Branding Approach
Going forward, both the Agro and Melamine businesses will be branded as'OCI
Agro' and 'OCI Melamine' respectively.
New Management Structure
The incumbent Agro business unit management and the present Melamine
business manager will be responsible for managing and running
operations for both the Agro and Melamine business units. OCI has
appointed Renso Zwiers as Chief Executive Officer of the Group. Mr.
Zwiers has extensive experience in the fertilizer business and has
almost 20 years worth of experience in general management at DSM. In
addition the following individuals comprise upper management: Mr. Job
ten Berge, who has been with DSM since 1989, has been appointed Chief
Financial Officer; Mr. Gert Jan de Geus will take up the position
ofChief Operating Officer; Mr. Frank Frissen has been appointed
Director Human Resources; Mr. Frank Choufoer and Mr. Marc van Doorn
will be responsible for ammonia-related and fertilizer-related
businesses respectively. Mr. Tim Scheerhoorn will lead the melamine
business.
Business Performance Update
DSM Agro and Melamine had a very strong first quarter. This robust
performance strengthens OCI's belief that the business will meet
management's expectations by year end. During the first quarter, the
businesses generated revenues of approximately EUR 180 million and
EBITDA of EUR 31 million.
Accounting Treatment and Consolidation
Upon transfer of the shares, second quarter results for the Agro and
Melamine businesses will be fully consolidated and reported during
OCI's Q2/H1 2010 results in September. The first quarter results will
be used to adjust the positive/negative goodwill resulting from the
transaction. The fair value of the transaction will be determined based
on a Purchase Price Allocation (PPA) study conducted by an independent
auditor. The implications will be as follows:
* If the PPA determines that the resultant transaction value has
yielded positive goodwill (i.e. the purchase price is greater than the
fair value plus first quarter results) then the first quarter results
of the business will have no impact on OCI's income statement impact
and the goodwill will be recorded on the consolidated balance sheet
* If the PPA determines that the resultant transaction value has
yielded negative goodwill (i.e. the purchase price is less than the
fair value plus first quarter results) then the first quarter results
of the business will have a direct impact on the income statement
For additional information
contact:
For additional information on OCI:
OCI Investor Relations
Department:
www.orascomci.com
Omar Darwazah
Email: OCI stock symbols: OCIC.CA / OCIC EY /
omar.darwazah@orascomci.com OCICqL / ORSD
Erika Wakid Orascom Construction Industries (OCI)
Email: Nile City Towers - South Tower
erika.wakid@orascomci.com
2005A Corniche El Nil
Cairo, Egypt
Hassan Badrawi
Director
Tel: +202 2461 1036/0727/
0917
Fax: +202 2461 9409
This information is provided by RNS
The company news service from the London Stock Exchange
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