Orascom Telecom today announced it plans to almost double its capital, refinance debt and to split assets excluded from group’s merger with VimpelCom.
If shareholders approve the proposal at an April 14 meeting, Orascom will double capital to $2.35 billion from currently US$1.26 billion capital. Group will also get the approval for a refinancing plan to take out the Company’s debt together with certain derivative transactions in an amount of approximately US$2.7BN.
If approved by shareholders, Group will form two companies with one to hold those assets that will go to VimpelCom and another entity that will hold assets excluded from the upcoming but almost done merger.
The new entity, Orascom Telecom Media & Technology Holding SAE, will hold following assets:
- Trans World Associate (Private) Limited (Pakistan)(51% ownership stake)
- Mobinil for Telecommunications S.A.E. (“Mobinil”) (28.755% ownership stake)
- Egyptian Company for Mobile Services (“ECMS”) (20.00% ownership stake)
- CHEO Technology Joint Venture Company (“Koryolink”) (75% ownership stake) together with all other assets and businesses located in North Korea
- Orabank NK (North Korea) (95% ownership stake)
- Middle East and North Africa for Sea Cables(Free Zone II) (100% direct and indirectly
held ownership stake)
- Med Cable Limited (UK) (100% ownership stake)
- Orascom Telecom Ventures S.A.E. (formerly known as InTouch Communications
S.A.E.)) (99.99% ownership stake)
- ARPU for Telecommunication Services S.A.E. (Egypt) (1% ownership stake)
- ORACAP Holding (Free Zone Port Tawfik) (99% ownership stake)