Orascom sells properties in Egypt
Orascom Development Holding has sold two hotels and a plot of land on the Red Sea through its subsidiary Orascom Development Egypt.
According to Orascom Development Holding (ODH), the sale of the hotels Royal Azur and Club Azur as well as the land in the Makadi destination took place at a higher enterprise value of around CHF 47.3 million - instead of the originally communicated 45.4 million. As a result, the total proceeds of 22.5 million are slightly higher than initially expected. The forecast was for proceeds of 21.4 million.
The sale will also result in the deconsolidation of debt amounting to 14.4 million of the Royal for Touristic and Development Company, the former owner company of the hotels, ODH added. In addition, the sale of the Makadi Gardens Hotel for 6.3 million is also being finalized.
The proceeds from the sale of the three hotels and the land as well as from the sale of the Tamweel Group, together with surplus liquidity from operations, are to be used to repay debt. The background to the transactions is the strategy of monetizing assets that are not part of the core business. (ah)
