The value of the deal will reach $800 million when the ownership percentage in Legacy Hotels Company reaches 51% and will be financed through the internal resources of ICON
Arab Company for Tourism and Hotels Investments (ICON), a Talaat Mostafa Holding Group subsidiary, finalized the acquisition 7 state-owned hotels in Cairo, Alexandria and Aswan with Egypt’s Initial Public Offering (IPO) program.
The 7 historic hotels are owned by a newly launched company named Legacy Hotels. Legacy Hotels that is a joint company between The Sovergin Fund of Egypt’s Sub-Fund for Tourism, Real Estate Investment and Antiquities Development and the Egyptian General Company For Tourism and Hotels (EGOTH).
ICON acquired 39% stake of Legacy Hotels with the right to subscribe to a capital increase to reach a 51% stake.
The value of the deal will reach $800 million when the ownership percentage in Legacy Hotels Company reaches 51% and will be financed through the internal resources of ICON. There will also be a capital increase of $882.5 million by an international strategic investor. With the entry of the strategic partner as a shareholder in ICON, the deal will represent one of the largest inflows of foreign direct investment into Egypt in the past few years.
The 7 hotels are: Sofitel Legend Old Cataract Aswan, Mövenpick Resort Aswan, Sofitel Winter Palace Luxor, Steigenberger Hotel Tahrir, Steigenberger Cecil Hotel Alexandria, Marriott Mena House Cairo and Marriott Omar Khayyam Zamalek.
This came during the Egyptian Cabinet press conference on Egypt's privatization program at the Cabinet's headquarters in the New Administrative Capital. The Egyptian Prime Minister Mostafa Madbouly stated that Egypt achieved $5.6 billion from stake sales in 14 companies within the IPO program.
Madbouly also stated that 4 new priority sectors have been identified for private sector engagement and these are: airports, telecommunications, banking, and insurance.
