Cairo - Mubasher: Orascom Development Holding (ODH) said Monday it intends to raise its issued capital by up to approximately CHF 278 million (EGP 2.1 billion).

The capital increase plan came to support ODH's real estate development initiatives in order to strengthen its financial resources and to support the further financing of the real estate developments required to meet the minimum building obligations in Oman and Montenegro for 2016 and 2017, said a press statement.

Subject to market conditions, the capital increase is expected to be executed before the end of the year.

The current intention is to conduct a capital increase by way of a rights offering with a fixed offer price set near the average ODH trading price.

The new registered shares shall be issued utilizing the ODH board of director’s existing authorisation to increase the share capital by issuing a maximum of up to 12,000,000 fully paid-up registered shares, ODH added.

It is intended that a part of the new shares will be created by converting available reserves into share capital.

The offer price will hence be below the par value. Holders of ODH's Egyptian Depository Receipts (EDRS) will be able to exercise the rights relating to the shares underlying the EDRs through the central depositary for the EDRs, Misr for Clearing, Settlement, and Central Depository (MCSD).

The company's main shareholder Samih Sawiris intends to participate, directly or indirectly through controlled entities, in the capital increase through the exercise of all of the subscription rights allotted to him (or to entities controlled by him) by way of setting off his existing loan granted to ODH against the aggregate offer price of such offered shares.

In addition, Sawiris, directly or indirectly through controlled entities intends to enter into a commitment to purchase offered shares for which rights were not validly exercised by existing shareholders at the same conditions as for existing shareholders of ODH.