Cairo – Mubasher: Talaat Moustafa Group Holding Company (TMG Holding) announced completing all procedures for the acquisition of a 51% stake in the management rights of Legacy Hospitality and Touristic Projects, which owns seven historic hotels in Egypt, through the group's hospitality arm ICON.
TMG also declared fulfilling all the agreement’s conditions and settling the full value of the transactions, according to a bourse filing.
The EGX-listed group conducted the deal by increasing Legacy Hospitality’s capital.
The group now holds the management rights in Legacy Hotels, which will increase the group’s operational hotel room base in Egypt by 2,500 keys and the total rooms owned and developed by ICON to 5,000.
Moreover, ICON completed the early settlement of around $220 million of foreign exchange liabilities, which is expected to reduce the risk associated with the operation.
This transaction reduced TMG’s debt-to-equity ratio to 1 to 9, compared to 1 to 3.5 at the end of 2023.
The seven hotels included in the deal are the Sofitel Legend Old Cataract Aswan, Mövenpick Resort Aswan, Sofitel Winter Palace Luxor, Steigenberger Tahrir Hotel, Steigenberger Cecil Hotel Alexandria, Marriott Mena House Cairo, and Marriott Omar Khayyam Zamalek.
In February, TMG Holding agreed with Abu Dhabi-based investment and holding firm ADQ and Modon Properties for the development of the Ras El-Hekma project with total investments of $24 billion.
The group reported a 44% year-on-year (YoY) surge in consolidated net profits after taxes and non-controlling interests to EGP 3.31 billion in 2023 from EGP 2.30 billion.
