The deal was reached between The Sovereign Fund of Egypt (TSFE), the state-owned Egyptian General Company For Tourism and Hotels, and TMG’s branch the Arab Company for Tourism and Hotel Investment (ICON), the Egyptian cabinet said in a statement.
The share transfer would bring the country 800 million U.S. dollars in foreign currency, it noted.
The three parties will form a joint venture, Legacy Hotels, as the owner of the seven hotels located in Cairo, Alexandria, and Aswan, with ICON taking 39 percent stakes, it said.
Under the deal, ICON could gradually increase its hold of stakes in Legacy Hotels to 51 percent.
TSFE Chairperson Hala El-Saeed, who also serves as the minister of planning and economic development, told the signing ceremony that the joint venture was also part of Egypt’s policy to “increase the participation of the private sector in the process of economic development.”
At the ceremony, Egypt’s Prime Minister Madbouly said that the government has recently achieved 5.6 billion dollars through fully or partially exiting 14 state-owned companies.
