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GTH appoints financial advisors for VEON’s purchase offer

GTH appoints financial advisors for VEON’s purchase offer
GTH’s board of directors is currently studying the offer.
Global Telecom
GTHE
5.59% 1.89 0.10

Cairo – Mubasher: Global Telecom Holding (GTH) on Wednesday announced it has hired KAMCO Investment Co and Fincorp Investment Holding as independent certified financial advisors by the Financial Regulatory Authority (FRA) to issue reports related to the purchase offer presented by VEON Ltd.

Earlier this month, the Egyptian firm said it received an offer by VEON to purchase its assets in the Pakistani subsidiary Jazz company and associated operations for $2.55 billion. GTH’s board of directors is currently studying the offer.

The board has approved the resignation of chairman and representative of VEON John Travis Eddie and hired Andrew Scott as the chairman and representative of VEON Luxemburg Finance SA, the company said in a filing to the Egyptian Exchange (EGX).

The acquisition offer presented by the Dutch company is higher than the actual price of GTH’s stock by 25%, as the fair value hit around EGP 6, and a dividend per share of EGP 3.5 is likely to be distributed, the telecom sector’s analysts told Mubasher.

In April, GTH disclosed that the Amsterdam-based VEON Ltd, its main shareholder, notified the FRA that it had withdrawn its mandatory offer to buy the remaining stake in the telecommunications company, explaining that time passed without getting any approvals.

In November, the FRA said that a mandatory tender offer was submitted to buy 42.31% of GTH's capital at EGP 7.9 per share.