Orascom Development sells 3 hotels, land plot for LE 882.6M

CAIRO – 20 March 2018: Orascom Development Egypt (ORHD) will sell three hotels and a land plot for LE 882.6 million ($50 million), according to a filing to the Egyptian Exchange (EGX).

The statement said that the Ordinary General Assembly approved the company’s proposal to sell its stake in Makadi Gardens Hotel, Royal Azur Hotel and Club Azur Hotel.

Orascom added that the Board of Directors of its subsidiary -Roaya for Tourist and Real Estate Development- also approved the sale of a land plot in Makadi destination with the hotels.

The statement clarified that the company will only be selling its stake in these properties, which will result in total cash proceeds of LE 492.8 million.

“The sale will also result in the deconsolidation of LE 260.1 million of debt held on Royal for Touristic and Development Company; the owning company of Royal and Club Azur Hotels,” the statement added.

The company expected a one-off gain from this sale which is about LE 373.8 million.
On the Extraordinary General Assembly meeting level, the assembly approved the stock split proposal of the company’s share at a ratio of 5:1, reducing its value from LE 5 per share to LE 1 per share.

The statement attributed the stock split decision to the company’s efforts to increase the liquidity and the trading of the stock.

As a result of the stock split, the total shares of the company will reach 1.1 billion, compared to the current shares of 221.66 million.

The Extraordinary General Assembly has also approved the five years employee stock ownership plan (ESOP) program presented by the management which includes the issuance of shares of up to 2 percent of the company’s capital at the time of execution.

Orascom Development Egypt is a public company, listed on the Egyptian Exchange (EGX) since June 1998.

It 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.

Orascom Development Egypt is based in Cairo, Egypt and was established in December 1995.