Orascom Development Holding AG (ODH) has successfully completed the sale of its Egyptian Hotel 'Citadel Azur Hotel' for an Enterprise Value of USD 50.0 million as part of the Group's strategy to monetize its non-core assets.

Thursday, 03 May 2018

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

03-May-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 AG (ODH) has successfully completed the sale of its Egyptian Hotel "Citadel Azur Hotel" for an Enterprise Value of USD 50.0 million as part of the Group's strategy to monetize its non-core assets.


Altdorf, May 3, 2018 - In line with the Group's strategy of enhancing its balance sheet, Orascom Development Holding AG (ODH) is pleased to announce the sale of its 100% stake in its 514 rooms hotel "Citadel Azur" located in Sahl Hashish, Egypt, to "Pickalbatros Group" (the buyer) for an enterprise value (EV) of USD 50.0 million.


The sale will result in cash proceeds of USD 32.0 million and the deconsolidation of USD 18.0 million of debt. Proceeds of the sale will be used to fund ODH's expansion plans in its destinations outside of Egypt.


CEO Khaled Bichara commented: "I am pleased to announce the conclusion of Citadel Azur Hotel sale for an enterprise value of USD 50.0 million. This sale confirms our continuous execution of our three-pillar strategy and reiterates our earlier message to the market that this Group owns many assets with substantial value, which are not adequately reflected in our stock price."


CI Capital Investment Banking acted as our exclusive financial advisor and White & Case acted as our legal advisor on this transaction.

 

About Orascom Development Holding:

Orascom Development 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 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: ir@orascomdh.com

Contact for Media Relations:
Philippe Blangey
Partner
Dynamics Group AG
Tel: +41 432 68 32 35
Email: prb@dynamicsgroup.ch
 

Disclaimer & Cautionary Statement

The information contained in this e-mail, its attachment and in any link to our website indicated herein is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorized to access or use any such information. Certain statements in this e-mail and the attached news release may be forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our targeted profit improvement, return on equity targets, expense reductions, pricing conditions, dividend policy and underwriting claims improvements. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and Orascom Development Holding's plans and objectives to differ materially from those expressed or implied in the forward-looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in our key markets; (ii) performance of financial markets; (iii) levels of interest rates and currency exchange rates; and (vii) changes in laws and regulations and in the policies of regulators may have a direct bearing on Orascom Development Holding's results of operations and on whether Orascom Development Holding will achieve its targets. Orascom Development Holding undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. It should further be noted, that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of the full-year results. Persons requiring advice should consult an independent adviser.
 


End of ad hoc announcement