Veon Wants 42% More Stake In Egypt's Global Telecom Holdings
The global provider telecommunications services provider Veon said it would officially present an offer with the Egyptian Financial Regulatory Authority to acquire an additional 42.3% stake in the Asian and Africa telecom operator Global Telecom Holdings that is listed in Cairo.
Veon issued a statement saying that it plans to deposit a public mandatory cash tender offer to the Egyptian Financial Regulatory Authority (FRA).
The payment would be in line with the provisions of Chapter 12 of the Executive Regulations of the Capital Market Law No. 95 of 1992 for the acquisition of up to 1,997,639,608 shares of Global Telecom Holding S.A.E ("GTH"), which is about 42.31% of GTH's issued shares.
According to Veon, Global Telecom has immediate funding requirements relating to the re-paying of certain debt obligations and an interest payment to other bondholders.
The North African country's capital market regulation compels Veon to pay the cash offer tender within 60 days of this announcement.
However, Veon added that this had not yet been completed because it had not yet submitted the MTO to the FRA. VEON declined to provide further details on this matter.
The service provider also confirmed that it intended to extend a US$100-million funding lifeline to the Egyptian company, which has renewed investor confidence in the firm.
Its stock went up by 10% on 23 January 2019, rebounding from a round of weaker trading, prompting regulators to pause trading on the company's shares in line with listing provisions.
Egyptian listing regulations order the bourse to suspend a stock from trading if it rises or dips by 10% or more in a single day's trading.
Credit: This article originated from www.itwebafrica.com