OCI Agrees to Payments in Settlement of Tax Claims
AMSTERDAM, THE NETHERLANDS--(Marketwired - Apr 30, 2013) -
OCI S.A.E. Receives Regulatory Approval on General Meetings for OCI
N.V. Transaction
OCI N.V.'s subsidiary, Orascom Construction Industries (OCI S.A.E.),
announced today that it will pay the Egyptian Tax Authority (ETA) ten
instalments during 2013 - 2017 totalling EGP 7.1 billion less EGP 182
million in existing tax credits to end a dispute regarding tax claims
for the years 2007 to 2010. During that period, OCI S.A.E. divested its
cement business through the sale of a listed subsidiary, Orascom
Building Materials Holding (OBMH). The agreed amount is based on the
originally disclosed tax claim by the ETA of EGP 4.7 billion including
accrued interest and delay fees.
The settlement amount was reached following months of challenging
negotiations. In conjunction with this agreement, the ETA has
determined that there was no tax evasion by the Company and is
exonerating management and the Company from any wrongdoing related to
the transaction.
The payments shall start with an initial payment of EGP 2.5 billion in
Q2 2013, EGP 900 million in December 2013, six equal instalments of EGP
450 million and two final instalments of EGP 500 million in 2017
totalling the agreed to EGP 7.1 billion. OCI N.V. will loan its
subsidiary OCI S.A.E., the Egypt listed company, the necessary funds
required for the tax settlement through intercompany loans to be
coordinated and channelled into the country through the Central Bank of
Egypt.
With the settlement of the tax claim, OCI N.V. expects to proceed with
its filing for the tender offer for the ordinary shares of OCI S.A.E.
with details to be announced in due course.
OCI N.V. Chairman Mike Bennett commented, "Having concluded this
matter, OCI and its management look forward to a positive relationship
with the Egyptian Government where our investments in Egypt can prosper
and the Company is able to channel its resources towards growth and
potential new investments."
OCI N.V. Chief Executive Officer Nassef Sawiris commented, "As we end
the prolonged period of uncertainty, the Company will now regain its
focus on growth initiatives."
The payment follows an almost year-long dispute with the Egyptian
government, in which the Board and management were faced with two
choices: 1) enter in to a prolonged legal battle with unpredictable
outcomes; or 2) make the payment to the government, despite the unified
view by the board, management and auditors KPMG that all laws and
regulations were soundly applied and followed at all times. However,
the Board and management concluded that a prolonged legal process would
not be in the best interest of the Company's stakeholders, including
its 45,000 employees in Egypt, who represent 50% of the group's
employee base. In addition, a prolonged legal process would take up a
significant part of management's time and attention, stall our future
investment and growth plans, and cause greater uncertainty for our
shareholders, creditors and other stakeholders.
The company confirms that there are no travel bans on any of its
executives.
About OCI N.V.:
OCI N.V. is a global nitrogen-based fertilizer producer and engineering
& construction contractor based in the Netherlands. The Fertilizer
Group owns and operates nitrogen fertilizer plants in the Netherlands,
the United States, Egypt and Algeria and has an international
distribution platform spanning from the Americas to Asia. The
Fertilizer Group ranks among the world's top fertilizer producers with
a fertilizer production capacity of nearly 7 million metric tons. The
Construction Group provides international engineering and construction
services primarily on infrastructure, industrial and high-end
commercial projects in the United States, Europe, the Middle East,
North Africa and Central Asia for public and private clients. The
Construction Group ranks among the world's top global contractors. OCI
N.V. employs more than 90,000 people in 35 countries around the globe
and is listed on the NYSE Euronext in Amsterdam.
For additional information contact:
Investor Relations Department For additional information about
OCI N.V.:
Omar Darwazah
Email: omar.darwazah@orascomci.com www.ocinv.nl
Erika Wakid Herikerbergweg 238,
Email: erika.wakid@orascomci.com 1101 CM Amsterdam Zuidoost
The Netherlands
Hassan Badrawi
Director OCI N.V. stock symbols: OCI /
OCI.NA / OCI.AS
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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