Talaat Mostafa Holding Group subsidiary ICON has agreed to acquire a 39% stake in Legacy Hotels, which owns seven hotels in the Egyptian cities of Cairo, Alexandria, Luxor, and Aswan.
The properties involved in this transaction include the Sofitel Legend Old Cataract Aswan, Mövenpick Resort Aswan, Steigenberger Hotel Tahrir, Marriott Omar Khayyam Zamalek, Steigenberger Cecil Hotel Alexandria, Marriott Mena House Cairo, and Sofitel Winter Palace Luxor.
Legacy Hotels is a joint venture between The Sovereign Fund of Egypt’s Sub-Fund for Tourism, Real Estate Investment and Antiquities Development, and the Egyptian General Company for Tourism and Hotels (EGOTH).
Additionally, the agreement grants ICON rights to raise its shareholding in Legacy Hotels to 51%.
When the ownership percentage in Legacy Hotels Company reaches 51%, the value of the deal will reach $800m.
ICON said it will fund the transaction from its internal resources.
With this acquisition, ICON's hotel portfolio will expand to 15 hotels with approximately 5,000 rooms, including those under development and construction.
EFG Hermes served as the sole financial advisor for the transaction.
The stake divestment is part of the Egyptian Government's Initial Public Offering (IPO) programme.
Egyptian Prime Minister Mostafa Madbouly revealed that the country has garnered approximately $5.6bn from the sale of stakes in 14 companies under the IPO programme.
