Tue, 18 Jun 2019 - 03:01 GMT
FILE – Orascom Development
CAIRO – 18 June 2019: Orascom Development Egypt (ODE) announced the conclusion of the sale its 87 percent equity stake in Tamweel Group for a total of LE 360 million to Ebtikar for Financial Investment S.A.E (“Ebtikar”), TCV1 and Acquire for Investment S.A.E.
Orascom Development clarified Tuesday that Ebtikar is a joint venture between MM Group for Industry and International Trade S.A.E and B Investments Holding S.A.E.
According to ODE’s statement, the share transfer has been executed after obtaining all necessary approvals and ODE will now start receiving the LE 313 million cash proceeds.
“The cash proceeds resulted from the sale is geared towards the company’s earlier communicated debt reduction plan, which entails further reducing the outstanding debt balance in 2019 and thus enhancing the balance sheet,” the statement read.
During the first quarter of 2019, Orascom Development recorded a 34 percent-increase in its consolidated profits, recording LE 111.33 million, compared to LE 83.08 million during the same quarter of 2018.
As per standalone results, the company turned into profitability by LE 27.48 million during the first quarter of 2019, compared to a loss of LE 45.95 million during the first quarter of 2018.
Orascom Development Egypt operates within the consumer services sector focusing on hotels, resorts and cruise lines with 52 subsidiaries operating across Northern Africa, Middle East and southern Europe.