ADQ & ADNEC Group to acquire 40.5% stake in Egypt’s ICON Group

ADQ & ADNEC Group to acquire 40.5% stake in Egypt’s ICON Group

ADQ, an Abu Dhabi-based investment and holding company, and ADNEC Group have signed definitive agreements for the strategic acquisition of a 40.5 percent stake in Egypt-based Talaat Moustafa Group Holding’s hospitality arm, ICON Group through a capital increase. ADQ and ADNEC will invest through a special purpose vehicle, with 49 percent equity ownership by ADQ […]ADQ, an Abu Dhabi-based investment and holding company, and ADNEC Group have signed definitive agreements for the strategic acquisition of a 40.5 percent stake in Egypt-based Talaat Moustafa Group Holding’s hospitality arm, ICON Group through a capital increase.

ADQ and ADNEC will invest through a special purpose vehicle, with 49 percent equity ownership by ADQ and 51 percent equity ownership by ADNEC.

The transaction represents a major foreign direct investment in Egypt and marks a strong vote of investor confidence in the Egyptian tourism and hospitality sector.

According to the statement, “The investment by ADQ and ADNEC in TMG’s Hospitality arm will be used partially to deleverage the existing debt of ICON, with the remaining used for the acquisition of a stake through ICON in the portfolio of seven luxury heritage hotels owned by the Egyptian Government, for which definitive agreements have been signed.”

The seven hospitality assets include