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VEON offers buying GTH’s assets in Jazz for $2.55bn

VEON offers buying GTH’s assets in Jazz for $2.55bn
GTH’s board of directors is studying the offer
Global Telecom
-15.79% 1.65 -0.30

Cairo – MubasherGlobal Telecom Holding (GTH) on Wednesday said that it has received an offer from VEON Ltd to purchase its assets in Jazz and associated operations for $2.55 billion.

VEON's, Global Telecom's main shareholder, offer entails acquiring GTH’s whole issued share capital in International Wireless Communications Pakistan Limited, Telecom Management Group Limited, Telecom Venture Limited and Mobilink Microfinance Bank, according to GTH’s statement to the Egyptian Exchange (EGX).

The telecom company added that its board of directors is studying the offer and will proceed in accordance with the applicable laws and regulations.

The takeover offer of the Amsterdam-based firm also includes assuming certain debt and payables of GTH, the statement showed.  

VEON will indirectly pay around $1.2 billion of GTH's debts as part of the acquisition deal, the Egypt-based firm said in a separated statement.

GTH noted that it incurred $500 million, equaling 6.25% of bonds due in 2020 and $700 million, representing 7.25%, of bonds maturing in 2023, in addition to their yields.

GTH's outstanding debts amounted to $385 million that will be transferred to VEON under the potential deal, according to the company's statement.

Global Telecom’s capital amounts to EGP 2.7 billion distributed over 4.7 billion shares at a par value of EGP 0.58 per share.