Cairo – Mubasher: Orascom Development Holding (ODH) on Thursday announced selling its stake in Royal Azur Hotel and Club Azur Hotel and a land plot in the Makadi destination on the Red Sea.
The sale was executed at a higher cash value than previously announced, the hotel development firm said in a statement to the Egyptian Exchange (EGX).
It further revealed that the sale, which was carried out through its largest subsidiary in Egypt, Orascom Development Egypt (ODE) resulted in higher cash proceeds of around CHF 22.5 million ($22.68 million or EGP 406.49 million).
“The sale was concluded at a higher enterprise value of c. CHF 47.3 million (EGP 854.47 million) than the CHF 45.4 million (EGP 820.15 million) that was previously announced. This will result in total cash proceeds of c. CHF 22.5 million compared to CHF 21.4 million that was previously announced,” ODH explained.
It further said that the sale would result in the deconsolidation of CHF 14.4 million of debt held on Royal for Touristic and Development Company, which is the former owner of the hotels.
Commenting on the sale, ODH CEO Khaled Bichara said that the deal was a “solid testament” to ODH’s strategy, which has entailed “significant strides to streamline and reshape [the company’s] investments through monetising its non-core assets.”
It is worth noting that the proceeds from selling the three hotels and the land plot in Makadi and of the Tamweel Group along with the excess cash flow from operations will be used in “reducing the debt balance as previously announced.”
ODH “will continue to wisely invest our capital to drive growth and prioritise our time and resources to build a stronger and sustainable organisation," Bichara concluded.
By 11:07 am Cairo time, ODE’s stock gained 1.47% to EGP 6.89.
