Cairo – Mubasher: Global Telecom Holding is expected to face consecutive obstacles in the next period due to the unclear plans of cancelling its global depository receipts (GDRs) and treasury shares, according to a research by Beltone Financial Holding.
The expected rise in the Egyptian pound's value will increase the pressures on the firm’s stock, Beltone added.
Global Telecom’s board approved a disclosure report to proceed with reducing the company's EGP 304.25 million capital through cancelling treasury shares.
In May 2017, Jazz Pakistan, a subsidiary of Global Telecom, acquired an additional 4G-LTE frequency in Pakistan for $295 million, in addition to 10% of the tax deducted at source.
The completion of the deal of the cell towers sale to Pakistan will be considered as an incentive to Global Telecom’s stock and rating, Beltone highlighted.
The fair value (FV) is expected to rise 24% to EGP 8.15 per share with a "Buy" recommendation.
Net revenues went up to $765 million in the second quarter of 2017 due to the growth in services revenues to $732 million in Q2-17 and the continuous growth in data revenues.
Global Telecom achieved profits of $35.1 million in the three months ended June 2017 from $26.5 million in the corresponding period of the year before.
