Orascom Development Holding AG
DGAP-Adhoc: Orascom Development Holding AG: Orascom Development intends to divest its stakes in select non-core assets in Egypt with a potential valuation range of CHF 110 - 130 million
Orascom Development Holding AG / Key word(s): Miscellaneous/Miscellaneous 25.05.2014 17:09 Release of an ad hoc announcement pursuant to Art. 53 KR --------------------------------------------------------------------------- Press Release Orascom Development intends to divest its stakes in select non-core assets in Egypt with a potential valuation range of CHF 110 - 130 million Altdorf/Cairo, 25 May 2014 - Since mid 2013, Orascom Development Holding AG (Orascom Development) has implemented a number of structural reforms. One key element of this major restructuring program is the re-focusing of the Group's business activities on the core operations in Egypt, Montenegro and Oman. Against this backdrop, Orascom Development, through its Egyptian subsidiary Orascom Hotels & Development (OHD) and other subsidiaries in Egypt, signed a memorandum of understanding on May 24th 2014 with Egyptian Resorts Company (ERC) to divest its majority stakes in select non-core assets in Egypt. The portfolio of assets targeted for sale includes three to four hotels and a significant undeveloped land bank in the Sahl Hasheesh area on the Red Sea. This portfolio, however, does not include any assets of the Group's flagship destination El Gouna. Pending an independent financial valuation, the transaction value is estimated at CHF 110 - 130 million. ERC will pay for the transaction using cash proceeds from a capital increase and any remaining balance via issuing shares in ERC to Orascom. Depending on the outcome of the capital increase, the Group's ownership stake in ERC could increase over the current level of 4.5%, making it the largest single investor in ERC. ERC is a leading Egyptian master developer of international standard resort communities, and is listed on the Egyptian stock exchange (EGX: EGTS.CA). Importantly, ERC is also one of the most actively traded companies on the EGX, which broadens the Group's strategic flexibility. ERC and Orascom Development have a proven track record of working together in Sahl Hasheesh, where ERC and Orascom Development's subsidiary Orascom Development and Management (ODM) previously worked closely together on the launch of the Sawari project, a 2.5 million square meter marina and luxury residential development. Subject to ERC's final board and ordinary general meeting of the shareholders and other Egyptians regulatory approvals, Orascom Development expects the transaction to close within five to seven months. 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 and budget housing. The Group currently operates eight destinations; four in Egypt El Gouna, Taba Heights, Haram City 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: +20 224 61 89 61 Tel: +41 418 74 17 11 Email: ir@orascomdh.com Contact Media Relations media@orascomdh.com 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 AG'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 AG's results of operations and on whether Orascom Development Holding AG will achieve its targets. Orascom Development Holding AG 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. 25.05.2014 News transmitted by EQS Schweiz AG. The issuer is responsible for the contents of the release. EQS publishes regulatory releases, media releases on the capital market and press releases. The EquityStory Group distributes authentic and real-time financial news for over 1'300 listed companies. The Swiss news archive can be found at www.equitystory.ch/news --------------------------------------------------------------------------- Language: English Company: Orascom Development Holding AG Gotthardstraße 12 6460 Altdorf Switzerland Phone: +41 41 874 17 17 Fax: +41 41 874 17 07 E-mail: ir@orascomdh.com Internet: www.orascomdh.com ISIN: CH0038285679 Valor: A0NJ37 Listed: SIX End of Announcement EQS Group News-Service ---------------------------------------------------------------------------