Global Telecom’s key shareholder strikes deal with Egypt to settle tax dispute

VEON Ltd, the major shareholder of Cairo-listed Global Telecom Holding, has signed on Wednesday a deal with the Egyptian Ministry of Finance to settle the tax liability for $136 million.

The tax settlement is in respect of tax liabilities for the tax years 2000 through 2018.

The agreement will see Global Telecom making the first settlement payment of $53.7 million at the time of signing the deal and the second settlement payment of $82.3 million by no later than 31 December 2019, the statement added.

Amsterdam-based VEON holds a 55.6 percent stake in Global Telecom, which operates the Djezzy network in Algeria, Mobilink in Pakistan and Sheba Telecom in Bangladesh.  It acquired Global Telecom’s assets in 2011 when, as Vimpelcom, it took control of Egypt’s Orascom Telecom.

VEON seeks to buy out the remaining portion of Global Telecom. VEON has secured also on Wednesday an approval from Egypt’s Financial Regulatory Authority to buy the outstanding 42.3 percent stake in Global Telecom for $600 million, or 5.08 Egyptian pounds per share.