Orascom Development Egypt sells noncore assets

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Sun, 25 Feb 2018 - 12:20 GMT


Caption: Orascom building – REUTERS / Mohamed Abd el-Ghany

Caption: Orascom building – REUTERS / Mohamed Abd el-Ghany

CAIRO – 25 February 2018: Orascom Development Egypt (ODE) signed two final offers to divest non- core assets, according to a filing to the Egyptian Exchange.

Orascom clarified that the proceeds of the sale will reduce the company’s debt by LE 1 billion and generate an interest savings of LE 100 million annually on average till 2024.

ODE added that it signed two final offers for the sale of 100 percent of its equity stake in Tamweel Group and the sale of its stake in Makadi Gardens, Royal Azur and Club Azur and a land plot in Makadi destination.

The first offer was signed with a consortium of international and local investors for the sale of Tamweel Group at a valuation of up to LE 300 million, a 10 percent of which is variable based on the Tamweel Group’s 2018 performance.

The statement pointed out that this sale will enable the company to deconsolidate its related debt of LE 1.1 billion as of September 30, 2017.

The second offer was signed with Meeting Point International Egypt, the Egyptian subsidiary of FTI Group, for the sale of their stake in the three hotels (Makadi Gardens, Royal Azur and Club Azur) and a land plot in Makadi destination for an Enterprise value of LE 939.3 million.

The company turned into profit in Q3-17, as net profit amounted to LE 92.5 million, compared to losses of LE 46.01 million in the same period the previous year.

Orascom Construction is a global engineering and construction contractor primarily focused on infrastructure, industrial and high-end commercial projects in the Middle East, North Africa, the United States, and the Pacific Rim.

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