Egypt’s Orascom Telecom Holding (OTH) has revealed more details of its demerger plans, which include a suspension of trading of its ordinary shares on the Egyptian Stock Exchange (EGX) after the close of trading on Thursday 24 November.
OTH is…
Egypt’s Orascom Telecom Holding (OTH) has revealed more details of its demerger plans, which include a suspension of trading of its ordinary shares on the Egyptian Stock Exchange (EGX) after the close of trading on Thursday 24 November.
OTH is planning to demerge into two separate entities, one of which will retain the OTH name. The other will be called Orascom Telecom Media and Technology Holding (OTMT) and will hold various investments in media, technology and telecoms companies that are currently held by OTH.
OTH said in a statement that the suspension of trading of ordinary shares would last until the OTMT shares had been listed.
OTH said that it will work towards a “prompt resumption of trading” of its shares on the EGX, but gave no date for when trading will be resumed.
The list of holders of OTH ordinary shares at the close of trading on 24 November will be used to establish the list of holders of OTMT ordinary shares, the company said.
It added that it is instructing BNY Mellon, the depositary of its global depositary shares (GDS), to suspend the conversion of GDSs into OTH shares, or the conversion of OTH shares into GDSs, as from the close of trading on the London Stock Exchange (LSE) on Wednesday 23 November.
Trading of its GDSs on the LSE is expected to continue during the period of the suspension of trading on the EGX. These GDSs will be listed under the symbol OTLD.
OTH also said in its statement that a new GDS programme for OTMT would be created with BNY Mellon as depositary.
OTH will transfer stakes in various companies to OTMT during the period when trading is suspended on the EGX, including the stakes in Mobinil, ECMS, OT Ventures and Middle East and North Africa for Sea Cables.
After completion of the demerger each OTH ordinary shareholder will receive one OTMT share for each ordinary OTH share, as a result of which the ownership structure of OTMT GDSs will correspond to the ownership structure of OTH GDSs on the record date for GDSs.
OTH said this GDS record date is planned to be one day before the resumption of trading of ordinary shares on the EGX.
According to the statement, OTMT also intends to list its GDSs on the LSE. This listing is expected to be completed “as promptly as reasonably practicable”. It is subject to the approval of the authorities.
