Saturday 19 October 2019

Orascom completes Tamweel Group stake sale

CAIRO, June 18, 2019

Orascom Development Egypt (ODE), an integrated developer of resort towns in the Arab nation, said it has concluded the sale of its 87 per cent equity stake in Tamweel Group for E£360 million ($21.4 million) to Ebtikar for Financial Investment (Ebtikar), a joint venture between MM Group for Industry and International Trade and B Investments Holding, TCV1 and Acquire for Investment.

A major player in Egypt, Tamweel Group comprises four companies operating in mortgage finance, factoring, leasing, collection and insurance brokerage.

The share transfer has been executed after obtaining all necessary approvals, said a statement from ODE.

The largest subsidiary of Orascom Development Holding, the ODE is an integrated developer of resort towns in Egypt, with a vertically-integrated business model involving the development of residential units, hotels, and recreational facilities such as golf courses, town centers, and marinas, in addition to supporting infrastructure, such as hospitals, schools, and utilities.

As part of the deal, ODE will now start receiving the E£313 million cash proceeds.

The cash proceeds resulted from the sale is geared towards ODE's earlier communicated debt reduction plan, which entails further reducing its outstanding debt balance in 2019 and thus enhancing the balance sheet, it stated.

The Egyptian developer currently owns a land bank of 49.9 million sq m and 24 hotels with a total of 4,918 rooms within four operating destinations - El Gouna, on the Egyptian Red Sea Coast in Hurghada, Taba Heights, on the Sinai Peninsula, Makadi in Hurghada and Byoum in Fayoum, it added.-TradeArabia News Service


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