Arab Finance: The Arab Company for Tourism and Hotels Investments (ICON), a subsidiary of Talaat Moustafa Group Holding (TMG), has signed the final agreements for the acquisition and full management rights of a 39% stake in Legacy Hotels, according to a cabinet statement.

The deals have been signed by the real estate tycoon Hisham Talaat Moustafa with the CEO of The Sovereign Fund of Egypt (TSFE) Ayman Soliman and the executive director of the Egyptian General Company for Tourism and Hotels (EGOTH).

Legacy Hotels is a joint venture between TSFE’s Tourism, Real Estate, and Antiquities Sub-fund and EGOTH, and it has a unique portfolio of seven hotels.

The seven hotels are namely Sofitel Legend Old Cataract Aswan, Mövenpick Resort Aswan, Sofitel Winter Palace Luxor, Steigenberger Hotel Tahrir, Steigenberger Cecil Hotel Alexandria, Marriott Mena House Cairo, and Marriott Omar Khayyam Zamalek.

The value of the takeover deal is set to hit $800 million when ICON’s ownership in the historic seven hotels reaches 51%, with the transaction to be financed from the internal resources of the company.

Moreover, initial estimations show that taking over the seven hotels could double ICON’s consolidated revenues from hotels to surpass $250 million in 2024.

It is worth noting that EFG Holding acted as the sole financial advisor on the transaction.

The company’s capital is also expected to see an increase of $882.5 million by an international strategic investor seeking a minority stake in ICON after restructuring, with TMG holding onto its majority stake.

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