Orascom Development Holding AG Sells RAK Tourism Investment FZC for USD 40 Million

Altdorf, 3 June 2024 – Orascom Development Holding AG (ODH) has entered into a binding share purchase agreement with Cove Holdings Limited for the sale of RAK Tourism Investment FZC in the UAE. The deal is valued at USD 40 million. ODH holds a 73% stake in RAK, which owns The Cove Rotana Hotel, a 349-room resort in Ras El Khaimah.

ODH and other shareholders will receive approximately USD 23 million in cash from the sale. The buyer, Saqr Kamal Hasan, will assume USD 18 million of RAK's debt. The transaction aligns with ODH's strategy to divest non-core assets and optimize capital. The deal is expected to close by Q3 2024, pending satisfaction of closing conditions.

Following the sale, Orascom Hotel Management will continue to manage the hotel during a transition period ending in Q3 2024. Rasmala Investment Bank and Dentons & Co. are advising the buyer, while Habib Al Mulla and Partners are acting as legal counsel for ODH.