Remco Company for the Establishment of Tourist Towns has agreed to appoint Finby Financial Consulting Company to evaluate the Stella Sharm Hotel as part of a purchase offer submitted to acquire it from a specialized hotel company.
In a disclosure sent to the Egyptian Stock Exchange on Wednesday, Remco said the selection of Fenby Financial Consulting for the evaluation work was made with the unanimous approval of the Board of Directors during the October 25 meeting.
Two days ago (October 24), Remco announced that it had received an offer to buy its hotel owned in Sharm El-Sheikh, “Stella Sharm”, with a total value of approximately 700 million pounds.
The company said in a disclosure to the stock exchange at the time that this offer was submitted by the National Company for Hotels and Tourist Services (Tulip) on 23 October (at 4pm to be exact).
The Stella Sharm Hotel is owned by the Scandinavian Company for Investments and Tourism Development, a subsidiary of Remco Company for the Establishment of Tourist Villages.
The company has indicated that this offer will be studied and presented to the Board of Directors at the earliest possible meeting, taking into account the provisions of Article (43) of the rules of listing and delisting in the Egyptian Stock Exchange.
Remco for Tourist Villages: We do not intend to liquidate the activity or business
On September 28, Remco for the Establishment of Tourist Villages denied the circulation of news about the liquidation of its business, while confirming the disclosure of any future purchase offers on the Stella Di Maria Hotel.
Remco operates in the field of establishing and operating tourist towns and their ancillary services, in addition to engaging in real estate investment activities.
The company owns six tourist hotels; The most important are the “Stella Di Mare Grand Hotel” and “Stella Sea Club” in the village of “Stella Di Mare” Ain Sukhna.
It also owns the Stella Di Mare Golf Hotel in Stella Di Mare Ain Sokhna Village and the Stella Sharm Hotel on the Naama Bay Plateau in Sharm El Sheikh.
Remco includes a number of the following subsidiaries, notably the Egyptian Company for the Establishment of Touristic Villages, the Orient Tours Company for Hotels and Touristic Villages, and the International Company for Tourism.
Remco Real Estate Construction Company, Pharaonic Trading and Contracting Company, and Amban Tourism Investments Company.
It is also followed by the Scandinavian Company for Investments and Tourism Development, and Remco for Restaurant Management, according to the publication on its website.
The company’s latest business results showed its losses narrowed to 188 million pounds during the first half ending last June, compared with losses of 265 million pounds during the comparable period from 2021.
The sale of Amban Investments to Al-Atris Steel Company for a value of 364.4 million pounds
Remco for the establishment of tourist towns has during the past and current years entered into sales operations to two affiliated companies within the framework of debt settlement with parties operating in the tourism market.
On March 6, the company’s shareholders unanimously agreed to sell Amban Tourism Investments at a new fair value of EGP 364.4 million.
Remco for the Establishment of Tourist Villages said in a disclosure sent to the Stock Exchange on Sunday that the general meeting of shareholders approved the fair value study and approved the sale to Al-Atris Steel Company or its shareholders.
On July 6, Remco disclosed that it had received a letter of intent from a group of Egyptian individual investors to acquire Amban for Tourism Investments at a value of 350 million pounds.
The company later noted that this offer had been submitted by: Mr. Atris Mohammed, and his two sons (Muhammad and Islam), and will not lead to cash transactions.
The financial offer includes the payment of 235 million pounds to Remco’s creditors for the establishment of tourist villages, while raw materials and strategic building materials for the company’s projects are provided with the rest of the amount (115 million pounds) no later than December 31 2022.
Remco undertakes to pay any current or future membership fees to any government entity (tax – insurance), in addition to any obligations arising from or arising from related commercial or construction operations.
Remco is also obliged to transfer all employees and employees of Amban Tourism Investments Company to one of the group companies and settle the resulting insurance obligations.
Remco owns “Amban Financial Investments” almost entirely (99.8%), but indirectly through another subsidiary, “Remco Real Estate Construction”.
Sold Orient Tours for a debt of more than one billion pounds in March 2021
On March 10, 2021, Remco shareholders approved the offer to sell Orient Tours, a subsidiary of Technolis Leasing Company, in exchange for the debt owed to it.
The purchase offer was submitted by four companies affiliated with the House of Expertise for Financial Leasing Company “Technolis”, and it is scheduled to transfer the full ownership of the shares of the Orient Tours Company for Hotels and Tourist Villages to them.
The transfer of ownership results in the forfeiture of the entire debt owed to Technolis, amounting to approximately 1.1 billion pounds, and the lack of entitlement to any future claims.
Remco also undertakes to pay any current or future membership fees to any government agency (tax – insurance), in addition to any obligations arising out of or arising from related commercial or construction operations.
Remco is also obliged to transfer all employees and employees of Orient Tours Company (of which ownership is transferred) to one of the group companies and settle the resulting liabilities.
The transfer process includes workers in the Stella Makadi Beach and Stella Madi Gardens hotels, according to a detailed disclosure sent to the stock exchange at the time.
Remco previously said the sale of “Orient Tours” would not result in any cash return for either party, but instead would transfer its ownership in exchange for Technolis’ debt.
The value of the debt of Technolis for financial leasing is approximately 1.14 billion pounds, and the ownership of 800,000 shares representing the total capital of Orient Tours is scheduled to be transferred to him.
Remco Company for the Establishment of Tourist Towns was established in 1995, and it was listed on the Egyptian Stock Exchange in 1998. Its issued capital is 2.4 billion pounds, spread over 264 million shares, with a nominal value of ten pounds per share.
Its current ownership structure is divided among members of the Adly Ayoub family, with 75.63% of the shares, in addition to others trading below 5% on free shares on the stock exchange, according to the latest disclosure on the ownership structure on October 10.