VEON submitting USD598m mandatory tender offer for GTH shares

5 Feb 2019

NASDAQ and Euronext Amsterdam-listed telecoms group VEON issued a statement today (5 February) announcing its intention to deposit a public mandatory cash tender offer (‘MTO’) with the Egyptian Financial Regulatory Authority (EFRA) for the remaining shares it does not own in its Egypt-based sub-division Global Telecom Holding (GTH) – up to 1,997,639,608 shares representing a 42.31% stake – at a price of EGP5.30 (USD0.299) per share. The MTO is worth up to USD597.97 million and will be submitted to the EFRA within 60 days. Russian-backed VEON intends to take GTH private following the MTO.

VEON owns 57.69% of GTH and already consolidates the results of GTH subsidiary cellcos Jazz (Pakistan), Banglalink (Bangladesh) and Djezzy (Algeria). As previously reported by CommsUpdate, in April 2018 VEON withdrew an offer for the remaining GTH shares after the EFRA failed to grant approval. Subsequently, in October 2018 VEON cancelled an offer to take full direct ownership of GTH’s Pakistan and Bangladesh units due to currency devaluation in Pakistan and an apparent initial negative reaction to the offer by GTH minority shareholders.

Egypt, Netherlands, Global Telecom Holding (GTH, formerly OTH), VEON (formerly VimpelCom)