Egypt’s Global Telecom in for $600m buyout

07 Feb 2019

Veon’s offer for the stake in Global, formerly known as Orascom, represents a 20 percent premium to its closing price on Monday and is worth $600 million Veon, based in Amsterdam, operates telecommunications companies in Russia and in developing countries in Asia and North Africa

AMSTERDAM/CAIRO: Telecoms operator Veon said on Tuesday it intends to offer 5.30 Egyptian pounds ($0.3005) per share for the 42.3 percent of Cairo-listed Global Telecom Holding it does not already own.
The offer for the stake in Global, formerly known as Orascom, represents a 20 percent premium to its closing price on Monday and is worth $600 million.
Veon, based in Amsterdam, operates telecommunications companies in Russia and in developing countries in Asia and North Africa. It holds a 55.6 percent stake in Global, which operates the Djezzy network in Algeria, Mobilink in Pakistan and Sheba Telecom in Bangladesh.
Veon said in a statement it has not yet submitted the offer to Egyptian financial authorities and it would not comment further. It called off a previous attempt to buy out Global’s assets in October.
Meanwhile, the International Monetary Fund will conduct its final review of Egypt’s three-year $12 billion loan program in June, Finance Minister Mohamed Maait said on Tuesday.
The IMF announced on Monday that it was disbursing the fifth out of six $2 billion tranches, after completing its fourth review of the program.
Foreign investors hold $13.1 billion in Egyptian treasuries, Deputy Finance Minister Ahmed Kouchouk said on Tuesday.
Kouchouk had last put the figure at $14 billion as of end-September, after a turbulent summer for emerging markets with weakened investor appetite.
Foreign investors bought Egyptian treasury bills and bonds worth $900 million in January, Maait said.
The average yield on bonds in the period from July until December was 18.5 percent, and the average yield on treasury bills sold in the same period was 19.5 percent, Kouchouk said.

arabnews

Contact US | Powered by CNPHUB.com - All Rights Reserved