Global provider of integrated telecommunications services Veon said it will officially table a cash offer with the Egyptian Financial Regulatory Authority to snap up an additional 42.3% stake in the Africa and Asian telecom operator Global Telecom Holdings, listed in Cairo.
A statement issued by Veon reads: "Veon announces that (it) intends to deposit a public mandatory cash tender offer with the Egyptian Financial Regulatory Authority in accordance with the provisions of Chapter 12 of the Executive Regulations of the Capital Market Law No. 95 of 1992 for the purchase of up to 1,997,639,608 shares of Global Telecom Holding S.A.E ("GTH"), representing approximately 42.31% of GTH's issued shares."
Global Telecom has "immediate funding requirements related to the servicing of certain debt obligations and an interest payment to external bondholders," according to Veon.
The North African country's capital market legislation compels Veon to deposit the cash offer tender within 60 days of the announcement.
However, this has not yet been completed and Veon has added: "As the Offeror has not yet submitted the MTO to the FRA, VEON is unable to comment further on this matter."
The service provider also confirmed its intention to extend a US$100-million funding lifeline to the Egyptian company, which has boosted investor confidence.
Its stock gained 10% on 23 January 2019, rebounding from a sustained weaker trading, prompting regulators to suspend trading on the company's shares in line with listing provisions.
Egyptian listing regulations compel the bourse to suspend a stock from trading if it rises or falls by 10% or more in a single day's trading.