ICON acquires majority stake in 7 hotels as part of Egypt’s privatization program – Egypt Today

ICON acquires majority stake in 7 hotels as part of Egypt’s privatization program – Egypt Today

CAIRO - 20 December 2023: In a significant move within Egypt's Initial Public Offering (IPO) program, the Arab Company for Tourism and Hotels Investments (ICON), a subsidiary of Talaat Mostafa Holding Group, has successfully completed the acquisition of seven state-owned hotels in Cairo, Alexandria, and Aswan.

The deal was finalized through Legacy Hotels, a newly established company jointly owned by 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).

Under the agreement, ICON has acquired a 39 percent stake in Legacy Hotels, with the option to subscribe to a capital increase that would ultimately grant them a controlling 51 percent stake.

The total value of the acquisition is estimated to reach $800 million once ICON's ownership percentage in Legacy Hotels reaches the majority threshold. The funding for the deal will come from ICON's internal resources, with an additional capital increase of $882.5 million provided by an international strategic investor.

This landmark transaction represents one of the largest inflows of foreign direct investment into Egypt in recent years. The partnership with a prominent international investor as a shareholder in ICON further solidifies the country's position as an attractive destination for