Cairo – Mubasher: Netherlands-based Veon Holdings B.V is looking to present a mandatory tender offer to purchase a 42.31% stake in Global Telecom Holding (GTH).

The Dutch company is planning to purchase up to 1.99 billion shares in GTH at EGP 5.3 per share, Veon said in a statement on Tuesday.

The offer will be submitted within 60 days from this announcement, according to the statement.

In January, GTH’s board of directors approved to extend the maturity period of the $100 million revolving loan facility from VEON, GTH’s majority shareholder.

The maturity period was extended for an additional three months starting 28 February under the same terms and conditions.

Moreover, GTH announced last month that its board of directors postponed its planned ordinary general meeting (OGM) related to an EGP 11.2 billion proposed rights issue to 27 March as a result of receiving a letter of support from the Dutch company.

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.”

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 May, GTH’s board approved a $100 million temporary rise in revolving credit facility agreement with VEON.

In April, GTH disclosed that the Amsterdam-based VEON Ltd, its main shareholder, notified the FRA that it had withdrawn its mandatory offer to buy the remaining stake in the telecommunications company, explaining that time passed without getting any approvals.