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Sunday, 14 July 2019

Veon nearly completes MTO of 42.3% of Global Telecom Holding

M&A WATCH- GTH nearly completes sale of 42.3% stake to Veon: Global Telecom Holding (GTH) shareholders have completed the sale of 37% of the 1.99 bn shares in a mandatory tender offer (MTO) launched by majority shareholder Veon to acquire 42.3% of the company, the local press reported. Shareholders offered to sell the 753 mn shares when the MTO kicked off on 2 July, just a few days after GTH reached a dispute settlement with Egypt’s Tax Authority.

Background: Veon’s plans to launch the MTO were previously hampered by the long-running tax dispute between GTH and the government, which was resolved earlier this month after GTH signed a USD 136 mn settlement agreement with the Egyptian Tax Authority. The Financial Regulatory Authority subsequently approved the MTO at EGP 5.08 per share, down from a previous EGP 5.30 per share.

In related news: The Jordanian government has appealed against a ruling by a Jordanian court that dismissed a dispute filed by the Jordanian tax authority against GTH subsidiary Pioneers Investment in 2014, the company said in a bourse filing (pdf). The Jordanian government claims that Pioneers, an inactive, Jordan-based GTH subsidiary, owes taxes after it sold telecom operator Fastlink in 2002. GTH says that it is not liable for Pioneers’ debts because it did not directly manage the company, and has expressed opposition to the Jordanian government’s appeal.

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