Press Release
Orascom Development successfully completes the sale of a 15% stake of its Egyptian subsidiary, Orascom Hotels and Development (OHD). The offering was oversubscribed 3.8x and generated EGP 506.1 million (approximately USD 70.7 million, CHF 69.9 million)
Altdorf/Cairo, 5 January 2015 - Orascom Development Holding (ODH) announces the completion of subscription in the public offering of its Egyptian subsidiary OHD, through the sale of 33,294,349 shares at a price of EGP 15.20 (approximately USD 2.12, CHF 2.10) per share. The offering generated EGP 506.1 million (approximately USD 70.7 million, CHF 69.9 million) in total proceeds for the Group. As a result of strong investor demand, ODH elected to proceed with the sale of a 15% stake in OHD, which is the top end of the range approved by ODH's Board of Directors.
The offering comprised a tranche of 22,196,233 shares (equivalent to a 10% stake in OHD) that was marketed exclusively to qualified investors (the "private placement"), and a tranche of 11,098,116 shares (equivalent to a 5% stake in OHD) for public subscription (the "public offering"). Total bids received for the private placement and public offering tranches were approximately EGP 1.25 billion and EGP 667 million respectively. This translates to an oversubscription of 3.7x and 4.0x the private placement and public offering tranches respectively. In total, the offering generated approximately EGP 1.92 billion (approximately USD 267.9 million, CHF 264.8 million) in bids, which is equivalent to an oversubscription of 3.8x.
Execution of the transaction was completed on Sunday January 4th, 2015, and the first day of resumption of trading of OHD's shares [ORHD.CA] on the Egyptian Stock Exchange (EGX) is expected to be on Tuesday January 6th, 2015.
This transaction marks the return of OHD's active trading on the EGX since 2008. OHD is the prime high-end resorts developer in the region and the owner of El Gouna, Taba Heights and Makadi Bay resorts, with a land bank of 45.9 million sqm and 24 hotels with a total of 6,039 rooms, hosting the premier leisure real estate in Egypt on the Red Sea coast.
The Group was advised by CI Capital and Beltone investment banks as joint lead arrangers and book runners on this transaction.
About Orascom Development Holding AG
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 eight jurisdictions (Egypt, UAE, Jordan, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary focus on touristic destinations. The Group currently operates seven destinations; three in Egypt El Gouna, Taba Heights, and Makadi, The Cove in United Arab Emirates , Jebel Sifah and Salalah Beach in Oman and Andermatt in Switzerland. Orascom Development has a dual listing, with a primary listing on the SIX Swiss Exchange and a secondary listing on the EGX Egyptian Exchange.
Contact for Investors:
Sara El Gawahergy
Director of Investor Relations
Tel: +20 100 218 56 51
Tel: +41 418 74 17 11
Email: ir@orascomdh.com
Contact Media Relations
media@orascomdh.com
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