Egypt-based Orascom Development Holding entered into an agreement with its Chairman Samih Sawiris for the potential purchase of 1% and one share of Andermatt Swiss Alps (ASA), a real estate firm managed by Sawiris, within the next two years, Invest-Gate reports.
The purchase price of the transaction stands at CHF 3.2 mn (nearly EGP 58.6 mn), valuing ASA equity at CHF 320 mn – or EGP 5.8 mn, Orascom said in an official statement on January 9, noting that such enterprise values were estimated by an independent third-party valuation.
“This would further enhance ASA’s equity position in the form of a capital contribution. [Sawiris] currently owns 51% of ASA, while Orascom Development Holding holds 49%. If the purchase is executed Orascom Development would hold 50% plus one share in ASA,” the statement added.
According to the statement, in order for the transaction to take place, Sawiris would need to omit CHF 150 mn (about EGP 2.7 mn) in debt that ASA currently owes him.
Commenting on the move, Sawiris said, “I am content by how far the destination has developed over the past ten years and I would like to thank the team for the hard work and perseverance on executing the masterplan that was designed a decade ago.”
In addition, Orascom’s CEO Khaled Bichara stated, “I believe that [ASA] is now poised on the right track of scalability, which can be witnessed from its improved operational performance.”