Egypt: Orascom Tax Settlement Reached

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Analysis

Egypt's tax authorities have reached a 7.1 billion Egyptian Pounds (US $ 1.04 billion) settlement with Orascom Construction Industries in an ongoing tax evasion dispute.

Background

The dispute started when OCI sold its cement subsidiary to France's Lafarge in 2007.

Further information

A spokesman for the country's Finance Ministry, Mohamed El-Saqqa, said the Ministry is working on finalising the settlement details.

Trading in OCI shares were temporarily suspended on 24 March but later resumed after the company promised to reveal details of the settlement as soon as possible to the country's stock exchange.

Earlier this month, Egypt's prosecutor-general, Talaat Abdullah, ordered a technical committee be established to look into the tax dispute which had also resulted in travel bans on the company's chairman and CEO Nassef Sawiris, and his father, former company chairman, Onsi Sawiris.

First reported on MENA Today on 25 March 2013.