UPDATE 1-Orascom Development calls off capital increase

* Share price plunged 10 pct on Monday

* Majority holder Samis Sawiris had committed to cap hike

* Company says hotel occupancy rate rose in Q1

(Adds details, background)

CAIRO, April 27 (BestGrowthStock) – Orascom Development Holding
(ODHN.S: )(ODHR.CA: ) said on Tuesday it has called off a planned
capital increase after detecting irregular trading activity in
its shares listed on the Swiss stock exchange.

The Swiss-based company, whose main presence is in Egypt,
said it had planned to sell shares on Tuesday representing 9.9
percent of its capital via an accelerated book-build.

It told the SIX Swiss Exchange that trading volume on Monday
had been unusually high and the share price had fallen steeply.
The stock fell 10.1 percent on Monday.

“Given the abnormal trade volume and significant decline in
share price, the company has decided to call off the planned
transaction,” Orascom said in an emailed statement.

Orascom mostly builds and manages mixed-use resorts, but it
also owns land, hotels and budget housing in countries across
the Middle East and Europe.

Orascom’s majority shareholder Samih Sawiris had backed the
capital increase by committing 85 million Swiss francs ($79
million), the statement said.

The company said a total 2.3 million shares were to have
been sold in the increase.

Orascom said an upward trend in hotel occupancies in the
second half of 2009 had continued during the first quarter of
2010 and that revenue from real estate sales was in line with
its expectations.

Stock Market Money

($1=1.076 Swiss Franc)
(Writing by Patrick Werr; Editing by Erica Billingham)

UPDATE 1-Orascom Development calls off capital increase