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Monday, 19 August 2019

GTH board approves Veon’s offer to acquire USD 2.3 bn assets

GTH board approves Veon’s offer to acquire USD 2.3 bn assets: Global Telecom Holding’s (GTH) board of directors has approved Veon’s offer to acquire all of GTH’s operating assets for USD 2.3 bn, GTH said in a bourse filing (pdf). Veon will acquire the company’s stakes in Jazz, Bangalink, Djezzy (including MedCable), and Mobilink Bank for PKR 313.3 bn, BDT 24.9 bn, DZD 70.2 bn, and PKR 14.7 bn respectively. The board also postponed the shareholders’ meeting to discuss the transaction to 9 September instead of 27 August.

Background: The Financial Regulatory Authority approved in June Veon’s mandatory tender offer (MTO) to acquire 1.99 bn shares in GTH, equivalent to a 42.3% stake in the company. The MTO closed earlier this month, leaving Veon with around 98% of GTH’s total outstanding equity. Plans for the MTO were a long time in the making, having suffered delays due to a long-running tax dispute between GTH and the government. The dispute was finally resolved in June, and the FRA subsequently approved the MTO at EGP 5.08 per share (down from EGP 5.30 per share previously).

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