Orascom Development Holding AG: enters into an agreement for the sale of RAK Tourism Investment FZC in the UAE for a total enterprise value of USD 40 million

Ad hoc announcement pursuant to Art. 53 LR.

Orascom Development Holding AG enters into an agreement for the sale of RAK Tourism Investment FZC in the UAE for a total enterprise value of USD 40 million

Altdorf, 3 June 2024 – Orascom Development Holding AG (“ODH”), alongside all the other shareholders of RAK Tourism Investment FZC (“RAK”), has entered into a binding share purchase agreement with Cove Holdings Limited, a special purpose vehicle established and fully owned by Saqr Kamal Hasan (“SKH” or the “Buyer”), a prominent UAE investor, for the sale of the entire share capital of RAK. RAK is the entity that owns the rights to the leasehold of The Cove Rotana Hotel (the “Resort”), a luxurious 349-room hotel in the coastal city of Ras El Khaimah, UAE. ODH holds a 73% ownership interest in RAK.

The transaction’s total enterprise value is USD 40 million, which equates to around USD 114,613 per key. ODH and the other shareholders of RAK will receive approximately USD 23 million in cash proceeds from their entire equity stake in RAK. Additionally, the Buyer is assuming approximately USD 18 million of RAK’s debt, which reduces ODH’s overall debt quantum.

This transaction aligns with ODH’s strategy of divesting non-core assets and recycling capital for value optimization. Orascom Hotel Management, ODH’s hotel management subsidiary, which currently operates 6,358 keys across three continents, will continue to manage the Resort post-closing for a transition period expected to last until Q3 2024. The transaction is expected to close in Q3 2024, subject to the satisfaction of certain closing conditions.

SKH appointed Rasmala Investment Bank Limited, an independent alternative asset manager based in the Dubai International Financial Center (DIFC), as its financial advisor, and appointed Dentons & Co. as its legal counsel. Habib Al Mulla and Partners acted as ODH’s legal counsel on this transaction.

About Orascom Development Holding AG:

Orascom Development Holding (ODH) is a leading developer of fully integrated towns, including hotels, private villas, apartments, leisure facilities such as golf courses, marinas, and supporting infrastructure. Orascom Development Holding’s diversified portfolio is spread over seven jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro, and the United Kingdom). The group currently operates ten destinations: five in Egypt (El Gouna, Taba Heights, Makadi Heights, O-West, and Byoum), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro, and West Carclaze Garden Village in the United Kingdom. The shares of ODH are listed on the SIX Swiss Exchange.

For more information, please visit https://www.orascomdh.com/.

Contact for Investors:      

Ahmed Abou El Ella     

Director of Investor Relations    

Tel: +20 224 61 89 61

Mobile: +20 122129 5555      

Email: ir@orascomdh.com

About Habib Al Mulla and Partners

Habib Al Mulla and Partners is a leading UAE law firm dedicated to helping foreign and local clients effectively conduct business in the Emirates. Led by Dr. Habib Al Mulla, a legal thought leader instrumental in helping modernize UAE law to make it more compatible with international business, the firm's lawyers have keen insight into the complexities involved with working under the jurisdiction of UAE law.

About Rasmala Investment Bank Limited

Rasmala Investment Bank Limited (“Rasmala”) is a leading alternative investment manager operating in global markets since 1999. Rasmala invests directly and alongside Gulf-based institutional investors including banks, pension funds, endowments, family offices, corporations and government institutions. Rasmala is based in the Dubai International Financial Centre and regulated by the Dubai Financial Services Authority (DFSA). For further details, please visit www.rasmala.com.

Disclaimer

This press release may contain forward-looking statements based on current assumptions and forecasts of ODH management. Known and unknown risks, uncertainties, and other factors could lead to material differences between any forward-looking statements made here and the actual development, particularly ODH's results, financial situation, and performance. ODH accepts no responsibility for updating or adapting forward-looking statements to future events or developments.