ADQ and ADNEC Acquire 40.5% Stake in TMG’s ICON Group 

A major deal has been finalized between ADQ, an investment and holding company based in Abu Dhabi, and ADNEC Group, to buy a 40.5% share in the hospitality division of Talaat Moustafa Group Holding (TMG Holding), known as ICON Group. This strategic move involves a capital increase and aims to boost the development of Egypt’s luxury hospitality industry. This comes after Talaat Moustafa Group secured a significant hotel deal in Egypt, which led to the sale of hotels, with most of them, to the economic arm of the UAE, ADNOC.

The deal details the purchase of a share in seven historic heritage luxury hotels, which were formerly owned by the Egyptian Government and are now part of ICON. The deal is structured through a special purpose vehicle, where ADQ will own 49% equity, while ADNEC will have a controlling 51% stake in the venture. The deal is structured through a special purpose vehicle, where ADQ, an investment and holding company based in Abu Dhabi, will hold 49% equity, while ADNEC Group, will secure a controlling 51% stake in the venture

White & Case UAE and Egypt provided legal counsel for the deal to ADQ and ADNEC, and prominent legal figures in Egypt played important roles, including Girgis Abd El-Shahid, the Managing Partner for Shahid Law firm, and Hani Sarey El-Din, the founder of Sarie Eldin & Partners. The involvement of these legal experts adds a level of expertise to the deal.

Moreover, the deal also involved notable legal figures in Egypt, such as Mohamed El Hennawy, VP & Group General Counsel at TALAAT MOSTAFA GROUP HOLDING COMPANY ‘TMG HOLDING’

ICON Group, a leading player in Egypt’s luxury hospitality market, currently operates four hotels and has three more hotels and luxury residential assets under development, with one hotel in the design phase. The funds from this investment will be used for reducing existing debt and buying a large stake in seven historic heritage luxury hotels owned by the Egyptian Government. This strategic move will greatly increase ICON’s portfolio, which will consist of 15 luxury and upscale hospitality assets.

As Egypt aims to attract over 30 million tourists annually by 2028, this deal aligns perfectly with the government’s strong tourism growth agenda. ADQ’s consistent investment strategy in the Egyptian economy shows its commitment to assets with long-term, sustainable returns, as shown by its previous investments in various sectors. The participation of ADNEC Group, especially through its tourism solutions arm Tourism 365, adds a level of synergistic potential to the investment in ICON.

EFG Hermes is playing a key role as the only financial advisor to TMG Holding throughout the deal process. The completion of this deal depends on meeting customary conditions, marking a significant step in building confidence in Egypt’s tourism and hospitality sector through substantial foreign direct investment.