Russian billionaire Mikhail Fridman’s Altimo has launched a cash offer to acquire 100% of Egyptian telco Orascom Telecom Holding (OTH) for US$0.70 per ordinary share. The offer values the company at US$3.67bn.
But Russian telco VimpelCom, which…
Russian billionaire Mikhail Fridman’s Altimo has launched a cash offer to acquire 100% of Egyptian telco Orascom Telecom Holding (OTH) for US$0.70 per ordinary share. The offer values the company at US$3.67bn.
But Russian telco VimpelCom, which controls 51.92% of OTH, has already announced that it will not tender its shares in response to the offer. VimpelCom is itself 47.85%-owned by Altimo.
This means that if Altimo successfully acquires 48.08% of OTH for US$1.76bn, it will directly and indirectly control approximately 73% of the Egyptian telco.
Commenting on the transaction, Evgeny Dumalkin, vice-president of Altimo, said: “This is an attractive opportunity for shareholders of Orascom Telecom Holdings to cash-out their investment with certainty and with a significant premium to the historic trading levels in highly volatile emerging markets.”
Today (16 April), Orascom’s shares opened at E£4.54 (US$0.66) and were later trading at E£4.65 (US$0.67). In late June last year, they were trading at E£2.65 (US$0.38).
Altimo, which is the telecoms investment arm of Russia’s Alfa Group Consortium, has hired EFG Hermes as M&A adviser on the transaction. Skadden, Arps, Meagher & Flom, as well as Zulficar & Partners are acting as legal advisers.
The mandatory share offer, which is conditional upon the tender of at least 26.16% of the outstanding shares, is expected to close on 27 May.
The offer is regulated by the Egyptian Financial Supervisory Authority.
Altimo owner Mikhail Fridman recently sold his stake in Russian oil firm TNK-BP for US$14bn, which he is now seeking to reinvest.
Orascom is listed on the Egyptian Stock Exchange and its global depositary shares are traded on the London Stock Exchange. The company operates in Algeria, Burundi, Zimbabwe, The Central African Republic, Canada, Pakistan and Bangladesh.
