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Dubai's Abraaj sells $52m stake in Egypt contractor Orascom

Dubai-based Abraaj Group is said to have sold its 5.4% stake in Orascom at a value of $8.30 per share

Dubai's Abraaj has sold its stake in Egypt-headquartered contractor Orascom amid allegations of misused funds [representational image / Getty].
Dubai's Abraaj has sold its stake in Egypt-headquartered contractor Orascom amid allegations of misused funds [representational image / Getty].

Egyptian contractor Orascom Construction announced that Abraaj Group no longer holds ordinary shares of the company. 

Dubai-based Abraaj Group is said to have sold its 5.4% in Orascom at a value of $8.30 per share, the contractor said in a statement on Nasdaq Dubai. 

READ: Egypt contractor Orascom's 2017 income jumps 112% to $104m

Abraaj's 6.25 million Orascom shares were valued at $52m. 

According to a Bloomberg report cited by Arabian Business, Abraaj, a private equity firm, is looking to restructure "amid allegations of misused funds". 

The report continued: "Abraaj has been under pressure since February when some of its investors commissioned an audit to investigate the alleged mismanagement of money in its healthcare fund."

Orascom is currently involved in all phases under construction for Cairo Metro. The Dubai- and Egypt-listed contractor is also in a 50:50 JV with FCC Aqualia.

The JV recently signed a notice to begin the engineering, procurement, and construction (EPC) contract for Egypt’s Abu Rawash Wastewater Treatment plant. 

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Construction Week - Issue 734
Mar 21, 2019