Orascom Investment Holding [OIH]
set on 14 September 2021
Impact: POSITIVE | Degree: STRONG
The Story: Yesterday, Orascom Investment Holding [OIH] released its H1 2021 results that were not that positive; however, the company’s BoD resolutions released also yesterday came with much more promising news that we thought would unlock some hidden value in the name. As it turns out, OIH’s BoD discussed the divestment of two of their investments:
(1)The sale of the seven floors owned by Victoire, OIH’s fully-owned subsidiary in Brazil.
(2)The sale and transfer of OIH’s entire stake (51%) in Pakistan-based Trans World Associates (TWA) to Orastar Limited.
We see the two divestments unlocking the hidden value in OIH’s investment portfolio that can be worth as much as c.1.1x OIH’s market cap at end of today.
Sherif El Etr
Equity Analyst
T +202 3300 5720