Since mid 2013, Orascom Development Holding AG has implemented a number of structural reforms. One key element of this major restructuring program is the re-focusing of the Group's business activities on the core operations in Egypt, Montenegro and Oman , according to property-magazine. Against this backdrop, Orascom Development, through its Egyptian subsidiary Orascom Hotels & Development (OHD) and other subsidiaries in Egypt, signed a memorandum of understanding on May 24th 2014 with Egyptian Resorts Company (ERC) to divest its majority stakes in select non-core assets in Egypt. The portfolio of assets targeted for sale includes three to four hotels and a significant undeveloped land bank in the Sahl Hasheesh area on the Red Sea. This portfolio, however, does not include any assets of the Group's flagship destination El Gouna. Pending an independent financial valuation, the transaction value is estimated at CHF 110 - 130 million. ERC will pay for the transaction using cash proceeds from a capital increase and any remaining balance via issuing shares in ERC to Orascom. Depending on the outcome of the capital increase, the Group's ownership stake in ERC could increase over the current level of 4.5%, making it the largest single investor in ERC.