VEON seals Africa deal which will de-list Global Telecom Holdings
Published on 27th June 2019
The Egyptian Financial Regulatory Authority has approved global telecom group VEON's tender offer to purchase the 42.3% stake it did not previously own in the country's Global Telecom Holdings, after settlement of its tax liabilities and putting it on course to delist the company from the Egyptian Stock Exchange.
The approval follows the settlement of outstanding tax liabilities for the tax years 2000 through 2018 by Global Telecom Holdings, which operates Djezzy mobile network in Algeria.
"VEON announces that its subsidiary GTH has reached agreement with the Egyptian Tax Authority to settle all outstanding tax liabilities of GTH and its Egyptian subsidiaries for a total amount of $136 million," Veon said late Wednesday.
The first settlement payment of US$53.7 million by GTH to the Egyptian tax authority covers the 2006 through 2007 and 2010 through 2018.
A second US$82.3 million settlement for the remaining periods will be effected by no later than 31 December 2019.
This had paved the way for the Egyptian Financial Regulatory Authority to approve VEON's cash tender offer to purchase the 42.3% shares of GTH.
The share purchase deal was completed at a price of about US$ 30 cents per share.
Further to this, VEON is now pursuing the de-listing of GTH from the Egyptian Stock Exchange, saying requisite shareholder approval" has already been obtained.
"A successful take-up of the mandatory tender offer, followed by the de-listing of GTH and subsequent asset transfers, will simplify the VEON Group structure while increasing its stake in operating companies in Pakistan, Algeria and Bangladesh," said Ursula Burns, chief executive officer for VEON.
The mandatory tender offer for the GTH shares opens on July 1 and will run for 25 business days, the company said.