Norbury Capital Challenges OCI-Orascom Merger Over Shareholder Equity Concerns

Norbury Capital plans to challenge OCI's merger with Orascom Construction, citing undervaluation and unfairness to minority shareholders. Norbury holds a stake in OCI and threatens legal action if terms are not revised. The merger implies no takeover premium and is due for a vote on January 22.

Norbury Capital has announced its intention to contest the proposed merger between OCI and Orascom Construction, arguing that the current deal undervalues OCI and fails to protect minority shareholders' interests. The Netherlands-based investment firm has raised concerns about the merger plan, insisting on a fair valuation of at least 7.1 euros per share.

OCI's shares experienced a slight uptick, trading at 2.95 euros, but the company has yet to provide an official comment on the situation. Acting within Dutch legal requirements, Norbury has formally notified OCI's independent board members and is prepared to initiate legal proceedings within a week if the merger terms remain unchanged.

The deal, which offers OCI shareholders a conversion rate of 0.4634 Orascom shares for each OCI share, is scheduled for a shareholder vote on January 22. Norbury, backed by fellow stakeholders representing 4.5% of OCI's outstanding shares, contends that the merger provides no premium above OCI's market value and has dramatically impacted its share price negatively.

(With inputs from agencies.)