Orascom Development Egypt’s (ODE) shareholders approved the sale of the company’s stake in Tamweel Group (Tamweel) for EGP360mn to a consortium of investors. The deal is expected to bring in total cash proceeds of EGP305mn, while also enabling ODE to deconsolidate EGP1.1bn-worth of debt related to Tamweel. Shareholders also approved the sale of a 7,955-sqm land plot in El Gouna to Business Park One for USD1mn (USD130/sqm). The company will construct its first office building in El Gouna and lease it to a Germany-based company, which will move its business – with more than 400 employees – to El Gouna. It is worth highlighting that we do not incorporate any sales of non-core assets in our numbers, including Tamweel. Our valuation for ODE implies an average price of USD84/sqm for El Gouna’s residual land bank. 
 
Orascom Development Egypt: EGP6.32 as of 25 Jun. 2018, Rating: Buy, TP: EGP8.00/share, MCap: USD393mn, ORHD EY/ORHD.CA
Mai Attia