CAIRO: Orascom Development Holding (ODH), a newly established Swiss-incorporated company, will reportedly make a tender offer to acquire 100 percent of Orascom Hotels and Development (OHD) with a minimum of 51%, according to a company press statement published on the CASE website. Al Mal and Al Alam Al Youm newspapers cited an announcement by the company of the sale, adding that the company aims to be listed on the Swiss Stock Exchange and subsequently on the Cairo and Alexandria Stock Exchanges. ODH will offer OHD shareholders three options, according to a statement by Beltone Financial. The first is a share swap option at a ratio of 10:1 (one ODH share for every ten OHD shares). The second option to investors is to sell OHD stocks for cash, at a price of LE 78.49 per share, which is equivalent to the six-month trailing average. Investors will have a third option not to accept either offer and remain shareholders in OHD. Beltone also said that it is widely expected that the Sawiris family, who collectively own 62 percent of OHD, will opt for the swap, according to the news reports. ODH will be listed on the Swiss Stock Exchange and ODH will also be listed on the Cairo and Alexandria Stock Exchanges, said Beltone. There is no intention to de-list OHD - it shall remain a listed company on the Cairo and Alexandria Stock Exchanges. The timing of the offering has yet to be officially announced but is expected to take place soon. Swiss-based UBS is acting as sole financial advisor on the listing on the Swiss Stock Exchange and Egypt-based Beltone Investment Banking is acting as sole advisor on the listing on the Cairo and Alexandria Stock Exchanges.
