Al Ahly Capital (Al Ahly) has reportedly signed an initial agreement to sell its 9% stake in Egyptian Resorts Company (ERC) to Red Sea Hotels Company (Red Sea). The sale is expected to take place before end of 2017, according to Khaled Badawy, Al Ahly Managing Director. Red Sea had bought Kato Investment’s 11.5% stake in ERC earlier in July. Upon the acquisition of Al Ahly’s stake, Red Sea would become the largest shareholder in ERC with a 20.5% stake.
Egyptian Resorts Company: EGP1.28 as of 14 Sep 2017, Rating: Neutral, TP: EGP1.08/share, MCap: USD76mn, EGTS EY/EGTS.CA