Holders of around 10% of Egyptian Orascom Telecom Holding (OTH)’s stock have tendered their shares in response to Altimo’s offer, according to Reuters citing sources.
Russian billionaire Mikhail Fridman’s Altimo, via its Baskindale subsidiary,…
Holders of around 10% of Egyptian Orascom Telecom Holding (OTH)’s stock have tendered their shares in response to Altimo’s offer, according to Reuters citing sources.
Russian billionaire Mikhail Fridman’s Altimo, via its Baskindale subsidiary, launched a US$0.70 per share offer to acquire OTH in mid-April.
However, a few weeks later, Orascom’s board recommended that shareholders do not accept the offer, arguing it undervalues the company.
Shortly after the Russian investment company said it would not change the value of its bid.
A banker following the situation suggested that, although Altimo’s offer is not high, shareholders might want to exit Orascom now because of low share liquidity.
Russian telco VimpelCom, which controls 51.92% of OTH, announced previously it would not tender its shares in response to the offer. VimpelCom is itself 47.85%-owned by Altimo.
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 and Zulficar & Partners are acting as legal advisers.
OTH and Altimo could not be reached for comment before the press deadline.
