Amsterdam-headquartered multinational telecoms group VEON has received approval from the Egyptian Financial Regulatory Authority (FRA) to proceed with a mandatory share buyout offer at its majority-owned subsidiary Global Telecom Holding (GTH). The FRA approved VEON’s cash tender offer to purchase the shares of GTH not currently held by VEON (up to 1,997,639,608 shares representing approximately 42.31% of GTH’s issued shares), at an adjusted offer price of EGP5.08 (USD0.30) per share. It is anticipated that GTH will subsequently be delisted from the Egyptian Exchange (EGX). Furthermore, VEON has submitted an offer to GTH ‘to acquire substantially all of its operating assets, subject to successful completion of the mandatory tender offer and delisting’.
The move will increase VEON’s stake in the GTH sub-division’s mobile operating companies: Jazz (Pakistan), Banglalink (Bangladesh) and Djezzy (Algeria).
GTH has also reached agreement with the Egyptian Tax Authority to settle all outstanding tax liabilities of GTH and its Egyptian subsidiaries for a total amount of USD136 million.