Orascom sheds Egypt assets in business revamp
Cairo, May 26, 2014
Swiss-listed Orascom said it would divest stakes in a number of non-core assets in Egypt as it restructures its business in the region, valuing the sale at up to 130 million Swiss francs ($145.13 million).
Orascom, an operator of tourist resorts and real estate projects in Egypt and Europe, posted a net loss of 157.8 million Swiss francs for 2013 due in part to the political instability in the country, which is taking its toll on the tourism industry.
Last year it said it would restructure its business to focus on its main operations in Egypt, Montenegro and Oman.
Run by Egyptian billionaire Samih Sawiris, a member of Egypt's richest family, Orascom said the assets would be sold to Egyptian Resorts Company (ERC) and included three to four hotels and an undeveloped land bank on the Red Sea.
The deal, which is expected to close in five to seven months, does not include any assets of Orascom's flagship destination El Gouna, the firm said.
Orascom estimates the transaction to be worth between 110 million and 130 million Swiss francs pending an independent valuation. It said ERC would pay for the deal with cash proceeds from a capital increase and through issuing shares to Orascom. - Reuters