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

26-Dec-2018 / 23:05 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) completed the sale of its stake in Royal Azur Hotel and Club Azur Hotel and a land plot in the Makadi destination with a higher cash proceeds of c. CHF 22.5 million.

Altdorf, December 27th, 2018 - Orascom Development Holding (ODH), through its largest subsidiary in Egypt, Orascom Development Egypt (ODE) concluded the sale of Royal Azur and Club Azur Hotels as well as a land plot in the Makadi destination on the Red Sea. The sale was concluded at a higher enterprise value of c. CHF 47.3 million than the CHF 45.4 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.

The sale will also result in the deconsolidation of CHF 14.4 million of debt held on Royal for Touristic and Development Company; the former owning company of the hotels.

The company is also in the course of finalizing the documents for the completion of the sale of the Makadi Gardens Hotel which was sold for CHF 6.3 million.

The proceeds of sale of the three hotels and the land plot in Makadi and of the Tamweel Group together with parts of the excess cash flow from operations, will all be geared towards reducing the debt balance as previously announced.

Khaled Bichara, Chief Executive Officer commented on the transaction: 'The conclusion of the sale is a solid testament to our continuous delivery of our strategy. Since the beginning of year, the company has made significant strides to streamline and reshape its investments through monetizing its non-core assets. We will continue to wisely invest our capital to drive growth and prioritize our time and resources to build a stronger and sustainable organization.'

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: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

Attachments

  • Original document
  • Permalink

Disclaimer

Orascom Development Holding AG published this content on 27 December 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 26 December 2018 22:44:01 UTC