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
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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


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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.

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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

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