Veon MTO for Global Telecom closes
M&A WATCH- Veon MTO for Global Telecom closes: Global Telecom Holding’s (GTH) sale of 1.99 bn shares in a mandatory offer (MTO) launched by majority shareholder Veon to acquire 42.3% of the company is now complete and the MTO has closed, according to an emailed statement (pdf) from Shalakany Law firm, Veon’s lead counsel. Veon will hold around 98% of the company’s total outstanding equity,” the statement said. The total purchase price for the shares is EGP 9.7 bn (USD 600 mn).
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 last 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.