Global Telecom Holding (GTH) will use the full $65 million proceeds from divesting ownership in Telecel Globe Limited, which owns 100% of each of U-COM in Burundi and Telecel CAR in Central African Republic, in repaying debts owed to Vimpelcom, said investor relations manager Mamdouh Abdel Wahab.
The official told Al Mal newspaper that GTH’s debts to the Russian company will amount to nearly $600 million, including bank interest, after deducting the proceeds from selling investments in Burundi and Central African Republic in addition to the $4 billion proceeds from divesting Djezzy.
Global Telecom announced yesterday it sold its entire 100 % stake in Telecel Globe Limited (TG), which owns 100 % of each of U-COM in Burundi and Telecel CAR in Central African Republic, for $65 million, subject to certain post-closing adjustments.
TG was acquired by Econet Wireless Global Limited, a diversified telecommunications group with operations in several countries mainly in Africa.
GTH had previously agreed to sell TG to another purchaser in the first quarter of 2013. That purchaser failed to close the deal and forfeited a deposit it had paid to GTH.
The official also stressed that the proceeds from selling GTH stake in Canada’s Globalive, amounting to $135 million, were paid to Vimpelcom as part of direct loans between Globalive and Vimpelcom but were not included in GTH debts that reached $4.5 billion on June 30.
He also said Algeria-based subsidiary Optimo is close to sign a $1 billion credit facility agreement with local banks.
Global Telecom loss narrowed 42.4% in H1 to $130.256 million, compared with $226.334 million in the year-ago period.