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Dutch VEON mulls taking Egypt’s GTH private

Dutch VEON mulls taking Egypt’s GTH private
The letter highlights “the option of taking GTH private to support its immediate funding requirements”
Global Telecom
GTHE
5.59% 1.89 0.10

Cairo – Mubasher: Global Telecom Holding (GTH) on Sunday announced that its board of directors has postponed its planned ordinary general meeting (OGM) related to an EGP 11.2 billion proposed rights issue to 27 March.

This came as a result of receiving a letter of support from the Dutch firm VEON Ltd, GTH’s majority shareholder, according to a statement to the Egyptian Exchange (EGX).

The letter, requested by GTH, highlights “the option of taking GTH private to support its immediate funding requirements related to the servicing of certain debt obligations and an interest payment to external bondholders”, the company added.

Earlier this month, VEON announced it would maintain acquisition talks with GTH.

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.

In April, GTH disclosed that the Amsterdam-based VEON Ltd, its main shareholder, notified the FRA that it had withdrawn its mandatory offer to buy the remaining stake in the telecommunications company, explaining that time passed without getting any approvals.