Orascom Development Holding AG / Keyword(s): miscellaneous
Orascom Development Holding AG: Closes a CHF 149 million transaction with Vail Resorts, Inc. By Andermatt Swiss Alps
04.08.2022 / 08:30 CET / Central-Central-European
Completed a CHF 149 million transaction with Vail Resorts, Inc. By Andermatt Swiss Alps
Altdorf, August 4, 2022 – Orascom Development Holding (ODH) is pleased to announce that Andermatt Swiss Alps (ASA), in which ODH holds a 49% stake, has entered into a CHF 149 million transaction with Vail Resorts, Inc.
With the closing of the transaction on August 3, 2022, Vail Resorts (Vail Resorts) and Andermatt Swiss Alps AG (ASA) confirmed investments of CHF 149 million in the Andermatt-Sedrun destination. Together, the two partners will make the destination a “main alpine destination”. ASA also plans to make additional investments of 350 million francs in its core businesses, real estate, hotels and infrastructure over the next three to five years.
Vail Resorts’ investment of CHF 149 million consists of two components: an investment of CHF 110 million in Andermatt-Sedrun Sport AG to be used for capital investments to improve the guest experience, including ski lifts, artificial snow, gastronomy, entertainment offerings and mountain infrastructure.
ASA will fully reinvest its proceeds of 39 million Swiss francs, on top of already planned investments of 350 million Swiss francs, in the continued development of its core hotel and infrastructure business and the expansion of Andermatt Reuss over the next three to five years. All funds will be shared between Andermatt and Sedrun.
Following shareholder and regulatory approval, Vail Resorts now owns a 55% stake in Andermatt-Sedrun Sport AG. ASA retains a 40% stake in Andermatt-Sedrun Sport AG, while the remaining 5% is held by individual shareholders. The aim of the partnership between Vail Resorts and ASA is to develop Andermatt and Sedrun into the shared vision of a ‘prime alpine destination’.
As of August 4, the company’s management will be the responsibility of Vail Resorts. Mike Gower has been appointed Vice President, COO and Managing Director of Andermatt-Sedrun Sport AG. There will be no other immediate changes to the running operations in Andermatt-Sedrun, especially SkiArena Andermatt-Sedrun.
“I look forward to working with – and learning from – the amazing team at Andermatt-Sedrun as well as our passionate partners and dedicated communities,” said Mike Gower. “I am delighted to support the significant investment being made in the destination as we work together to make Andermatt-Sedrun the leading alpine destination in Europe. We are proud to add this private resort to the Vail Resorts network and I am personally committed to operational excellence and collaboration.”
Raphael Crocker, CEO of Andermatt Swiss Alps AG and member of the board of Andermatt-Sedrun Sport AG: “The Vail Resorts are the ideal partner to achieve our goal of further developing Andermatt and Sedrun as the preferred alpine destination. I very much look forward to the collaboration, joint investments and complementary expertise of Vail Resorts.”
About Orascom Development Holding (ODH):
ODH is a leading developer of fully integrated destinations that include hotels, villas, apartments and recreational facilities such as golf courses, marinas and supporting infrastructure. ODH’s diverse destination portfolio is spread across 7 countries (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro and the UK), with a primary focus on tourist destinations. ODH currently operates nine destinations: four in Egypt (El Gouna, Taba Heights, Makadi Heights and Biome), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro and Andermatt in Switzerland. ODH shares are listed on the SIX Swiss stock exchange. ODH recently launched O West, the latest addition to its portfolio and its first project in Cairo, Egypt, located in 6th of October City.
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