OCI Global’s Merger

77 Views23 Dec 2025 12:50

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SUMMARY

In what can only be described as a masterclass in public equity value destruction disguised as strategic transformation, OCI Global (Euronext: OCI) announced on December 9, 2025, a proposed merger with Orascom Construction.
This merger represents capitulation by independent directors and a betrayal of minority shareholders at an exchange ratio of 0.4634 Orascom Construction shares per OCI share, implying a valuation of approximately €3.73 per OCI share, prior to a 15% withholding tax. Post-tax, it is worth €3.17 on a stock trading at €3.00.
The deal delivers a cash-rich, debt-free liquidating balance sheet into the hands of a controlling shareholder at a deep discount while stranding minority shareholders in illiquid foreign-listed paper with tax leakage.

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