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OTMT denies nationalization of koryolink

OTMT denies nationalization of koryolink
Photo Credit: Arabianeye-Reuters
Orascom Investment Holding
OIH
-3.26% 0.42 -0.01

Cairo - Mubasher: Orascom Telecom Media and Technology (OTMT) denied the nationalisation of its 75% owned subsidiary Cheo Technology JV (koryolink).

The company is still running negotiations with the Korean side, while the firm's staff is still operating normally, said a bourse statement.

The company is committed to announce any further developments, noted the statement.

Earlier, OTMT said it adopted a revised accounting treatment regarding koryolink. The accounting treatment entails the de-consolidation of koryolink from the consolidated financial statements to remain as an Associate instead of being a Subsidiary.

As disclosed in OTMT’s H1, 2015 financial statements, OTMT and the Korea Post and Telecommunications Corporation (KPTC) have been in discussions regarding the merger of Koryolink with the state-owned mobile operator.

OTMT reported EGP 3 billion in losses for the first nine months of 2015, compared with EGP 603 million a year earlier.