Orascom Development Egypt
Orascom Development Egypt becomes institutional investor's only Egyptian “most honored company”
Orascom Development Egypt announced the completion of selling its stake in two hotels and a land plot in the Makadi destination.
Orascom Development Egypt (ODE) announced that its hotel subsidiary Orascom Hotels Management (OHM) signed an agreement with Thomas Cook with a total investments of LE 200 million.
This sale will enable the company to deconsolidate the related debt of Tamweel Group which reached LE 1.1 billion by the end of March 2018.
Orascom Development Egypt will own about 70 percent of the new company’s shares and Sameh Sawiris will contribute the remaining 30 percent of the capital.
The project is similar to the nearby El Gouna, coming out as a fully integrated resort town that takes into account all tastes.
Orascom Development Egypt (ORHD) intends to increase the percentage of free trading shares on the Egyptian Exchange (EGX) to 25 percent in 2018, up from the current 15 percent.
The Company will only be selling its stake in each, which will result in total cash proceeds of LE 492.8 million.
Orascom clarified that the proceeds of the sale will reduce the company’s debt by LE 1 billion.
ODE will continue to seek an optimal balance in sheet structure and will continue its plans to reduce and restructure its debt, according to the press release.
Orascom Hotels and Development’s shares will trade under the new name Orascom Development Egypt.
The company wants to repay between LE 700 million and LE 1 billion of its debt in 2018
Orascom Development Egypt’s sales surged 96 percent year-on-year and 187.9 percent quarter-on-quarter to LE 533.4 million in the second quarter.
The hotels segment’s revenues hiked 145.2 percent to LE 448.8 million, rising from LE 183 million in H1 of 2016.