Global Telecom’s EGM Approves Sale of 51% Stake in Algerian Unit

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The extraordinary general meeting (EGM) of Global Telecom Holding (GTH) approved on Tuesday, August 26 the sale by GTH of a 51% stake in Orascom Telecom Algérie SpA (OTA) to the Fonds National d’Investissement (FNI), the Algerian National Investment Fund, for a purchase consideration of US$2.643 billion.
GTH, the FNI and VimpelCom Ltd. (“VimpelCom”) entered into a Share Purchase Agreement (the “Share Purchase Agreement”), dated 18 April 2014, to provide for the sale to the FNI of a 51% interest in OTA.
OTA will also distribute a cash dividend of US$1.862 billion to GTH and its subsidiary companies, Moga Holding Ltd. and Oratel International Inc. (the “Subsidiaries”) prior to the closing of the transaction (“Closing”). The total dividends and proceeds due to GTH and its Subsidiaries at Closing are expected to amount to US$4.0 billion, net of all taxes and after the settlement of all outstanding disputes between the parties and the payment of associated amounts.
All proceeds will be used to pay down the outstanding shareholder loans provided by VimpelCom entities to GTH.