Orascom Development Holding AG through its largest subsidiary in Egypt, Orascom Development Egypt (ODE) signs two final offers to divest non-core assets. Proceeds of the sale will reduce ODE's debt by c. CHF 55.2 million and generate interest savings of c. CHF 33.3 million till 2024.

Monday, 26 February 2018

Orascom Development Holding AG / Key word(s): Miscellaneous/Miscellaneous

26-Feb-2018 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

Press Release

Orascom Development Holding (ODH), through its largest subsidiary in Egypt, Orascom Development Egypt (ODE) signs two final offers to divest non-core assets. Proceeds of the sale will reduce ODE's debt by c. CHF 55.2 million and generate interest savings of c. CHF 33.3 million till 2024.

Altdorf, February 26, 2018 - In line with the Group's strategy of enhancing its balance sheet, ODH will dispose a number of non-core assets and will use the proceeds to reduce its debt balance by c. CHF 55.2 million.

Accordingly, ODH's largest subsidiary in Egypt, Orascom Development Egypt (ODE) has signed two final offers for the sale of 100% 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. All due diligence and related paperwork for both deals have been finalized and their conclusion is now only pending on the approval of ODE's general assembly meeting and regulatory entity approvals in Egypt.

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 CHF 15.9 million, 10% of which is variable based on Tamweel Group's 2018 performance. This sale will enable us to deconsolidate its related debt of CHF 60.9 million as of 30.9.2017.

The second offer was signed with Meeting Point International Egypt, the Egyptian subsidiary of FTI Group, for the sale of our stake in the three hotels (Makadi Gardens, Royal Azur and Club Azur) and a land plot in Makadi destination for an enterprise value of CHF 49.7 million.

The proceeds of the above-mentioned sales together with excess accumulated operational cash is geared towards reducing the debt by c. CHF 55.2 million. This will result in interest savings of c. CHF 33.3 million in the aggregate till 2024 and will allow us to reach more favorable debt ratios. In parallel, we are in negotiations with the banks to further optimize our repayment schedule.

 

About Orascom Development Holding (ODH)

Orascom Development Holding (ODH) is a leading developer of fully integrated destinations that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. Orascom Development's diversified portfolio of destinations is spread over seven jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary focus on touristic destinations. The Group currently operates ten destinations; five in Egypt (El Gouna, Taba Heights, Fayoum Makadi, and Harram City), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro and Andermatt in Switzerland. The shares of Orascom Development Holding (ODH) are listed on the SIX Swiss Exchange.


Contact for Investors:
Sara El Gawahergy
Head of Investor Relations
Tel: +202 246 18961
Tel: +41 418 74 17 11
Email: [email protected]

Contact for Media Relations:
Philippe Blangey
Partner
Dynamics Group AG
Tel: +41 432 68 32 35
Email: [email protected]
 

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End of ad hoc announcement