Altimo buyout of Orascom shares runs into complications

28 May 2013

Altimo, part of Russia’s Alfa Group, has asked the Egyptian Financial Supervisory Authority (EFSA) to waive the minimum take-up requirement relating to its would-be buyout of minority shareholders in Orascom Telecom Holding (OTH). According to Reuters, Orascom shareholders recently offered to sell 15.9% of the shares listed on the Egyptian stock exchange in response to a USD0.70 per share offer from Altimo’s Cypriot affiliate Baskindale Limited, falling short of the regulator-stipulated 26.6% minimum required for the buyout.

The deal was expected to pave the way for the Vimpelcom Group to effectively take full control of OTH. The Russian backed, Amsterdam-based telecoms giant currently owns a 51.9% stake in OTH via directly held and subsidiary holdings, while Altimo is Vimpelcom’s largest shareholder.

Egypt, Russia, Altimo (part of the Alfa Group), Global Telecom Holding (GTH, formerly OTH), VEON