Cairo – Mubasher: The ordinary general meeting (OGM) of Global Telecom Holding has approved to license a $100 million temporary increase in a revolving credit facility agreement with VEON Holdings B.V.
The OGM has endorsed the contract at a return of 9.8% on annual withdrawals and 0.25% per annum on unearned amounts as commitment fees, Global Telecom said in a filing to the Egyptian Exchange (EGX) on Wednesday.
The expiry date of the temporary raise, which will mature in no more than six months from the entry date, will be excluded, the company added.
The temporary increase will be used for the company’s general purposes such as settling the short-term loan due on 15 June 2018, the company indicated.
The OGM has agreed to rehire the top management for another three years as of 30 May 2018.
The independent financial consultant said that the fair value of the increase ranges between 10.88% and 12.07% per annum, according to the filing.
In April 2018, Global Telecom said that Amsterdam-based VEON Ltd, its main shareholder, notified the FRA that it had withdrawn its mandatory offer to buy the remaining stake in the telecommunications company.
The Dutch company said it had withdrawn its offer as time passed without getting any approvals.
Global Telecom’s capital amounts to EGP 2.7 billion distributed over 4.7 billion shares at a par value of EGP 0.58 per share.
In November, the FRA said that a mandatory tender offer was submitted to buy 42.31% of Global Telecom's capital at EGP 7.9 per share.
