Orascom CEO appeals prison sentence

Egyptian hotel and real estate development company Orascom Development Holding is appealing a two-year prison sentence for its CEO Samih Sawiris, who was convicted last week of breaching Egyptian capital markets law by misrepresenting Orascom’s ownership of its subsidiary Orascom Hotels & Development. According to an Orascom press release, its appeal has led to a suspension of the judgment and an initiation of discussions for settlement.

On Thursday, a Cairo court ruled that under Sawiris, Orascom misrepresented its ownership of its subsidiary Orascom Hotels & Development, overstating its 96.14% ownership as 98.16% in a company filing. The ruling also stated that Orascom breached an obligation to its shareholders to have the company publically listed for three years from the date of a public tender offer in 2008.

Orascom complained that the ruling came after just two hearings, which did not allow the company to sufficiently plead its case.

Orascom’s portfolio includes 5-star resorts on the Red Sea.