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Global Telecom Holdings delisted from Egypt's Stock Exchange

By , Journalist
Egypt , 10 Sep 2019

Global Telecom Holdings delisted from Egypt's Stock Exchange

Global Telecom Holdings (GTH), which operates Djezzy in Algeria, has been delisted from the Egyptian Stock Exchange while shareholders in VEON yesterday approved the company's acquisition of all of GTH's operating assets, which include also encompass networks in Bangladesh and Pakistan.

This finalises VEON's acquisition of the interests it did not previously hold in GTH.

According to VEON, the Egyptian Exchange published a Delisting Decree for Global Telecom Holding and as a result, "GTH's shares are expected to be delisted from the EGX at the end of (yesterday's) trading" session.

Ursula Burns, VEON's chairman and chief executive officer said this development now "enables us to embark on a comprehensive restructuring of GTH" with the aim of further simplifying the company structure.

"We welcome today's approval, which follows the success of our recent tender offer for GTH's shares and the subsequent delisting of GTH from the Egyptian Exchange. We appreciate the cooperation of the Egyptian authorities throughout this process.

Outstanding statutory liabilities for GTH in Egypt are also being settled, with the second settlement payment of US$82.3 million "relating to outstanding tax liabilities" being completed yesterday. This now means that GTH has now resolved its tax liability issues with the Egypt Tax Authority.

"As a result, GTH has resolved all outstanding tax liabilities in Egypt for the tax years 2000 through 2018," commented the company.

GTH's mobile network operation in Algeria, Djezzy, says the telecom market in the country remains challenging, with intense price competition, especially in channel related incentives further compounding the plight of operators.

Additionally, the country's "regulatory and macro-economic environment remains characterized by inflationary pressures and import restrictions".

The government of Algeria raised the tax on recharge transfers between operators and distributors from 0.5% to 1.5%, under the Finance Law introduced on 15 July 2018.

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