EFG-Hermes Suspends Its Coverage Of Orascom Telecom

EFG-Hermes Research announced that it suspended coverage of Orascom Telecom Holding (OTH))(ORTE).

Hermes added that its Investment Banking division  (HRHO.CA) is acting as the M&A Financial Advisor to Altimo in connection with the acquisition of a direct stake in OTH through a mandatory tender offer.

Hermes said  “Effective immediately, our rating, fair value estimate, and forecasts should not be relied upon in making any investment decisions and until further notice. “

On March 31st, Egypt’s financial regulator – the Egyptian Financial Supervisory Authority (EFSA) announced that  Baskendal Ltd – a company founded in the State of Cyprushas deposited an offer to buy up to 100% of Orascom Telecom Holding (OTH) (ORTE.CA) at a price of $0.70  per share.

Baskendal Ltd is a subsidiary wholly owned by  Altimo – owner of 47.85% stake in VimpelCom Limited (the parent company of Orascom Telecom).

The EFSA further declared that the offer is up to  5,245,690,620 shares, representing 100% of the shares of Orascom Telecom Holding price 0.70 dollars per share to be paid as follows :

(a) In Egyptian pounds, according to the exchange rate announced by the Central Bank of Egypt two working days before the date of the purchased shares settlement process for ordinary  shareholders or (b) In U.S. dollar for GDRs shareholders .