ZURICH May 25 Swiss-listed Orascom
said on Sunday it would divest stakes in a number of non-core
assets in Egypt as it restructures its business in the region,
valuing the sale at up to 130 million Swiss francs ($145.13
Orascom, an operator of tourist resorts and real estate
projects in Egypt and Europe, posted a net loss of 157.8 million
Swiss francs for 2013 due in part to the political instability
in the country, which is taking its toll on the tourism
Last year it said it would restructure its business to focus
on its main operations in Egypt, Montenegro and Oman.
Run by Egyptian billionaire Samih Sawiris, a member of
Egypt's richest family, Orascom said the assets would be sold to
Egyptian Resorts Company (ERC) and included three to
four hotels and an undeveloped land bank on the Red Sea.
The deal, which is expected to close in five to seven
months, does not include any assets of Orascom's flagship
destination El Gouna, the firm said.
Orascom estimates the transaction to be worth between 110
million and 130 million Swiss francs pending an independent
valuation. It said ERC would pay for the deal with cash proceeds
from a capital increase and through issuing shares to Orascom.
($1 = 0.8958 Swiss Francs)
(Reporting by Alice Baghdjian; Editing by Alison Williams)