Altimo not to re-bid for Orascom Telecom shares

Russian investment group Altimo has said it has no intention of embarking on a second attempt to buy out minority shareholders in Orascom Telecom, after Egyptian financial authorities scuppered its efforts to reopen the original tender.

Altimo (Moscow, Russia) indirectly owns 24.85% of Orascom Telecom (Cairo, Egypt) through its 47.85% stake in VimpelCom (Amsterdam, Netherlands), the Egyptian company’s majority owner.

Russian investment group Altimo has said it has no intention of embarking on a second attempt to buy out minority shareholders in Orascom Telecom, after Egyptian financial authorities scuppered its efforts to reopen the original tender.

Altimo (Moscow, Russia) indirectly owns 24.85% of Orascom Telecom (Cairo, Egypt) through its 47.85% stake in VimpelCom (Amsterdam, Netherlands), the Egyptian company’s majority owner.

Last April, the Russian investor tried to buy out Orascom Telecom’s minority shareholders in a deal worth about $1.8 billion, but the transaction collapsed because Altimo’s offer had received only a lukewarm response by the deadline of 27 May.

Investors holding about 15.9% of shares in Orascom Telecom had agreed to sell, but Altimo needed to reach a threshold of 26.6% for the deal to proceed.

Orascom Telecom had advised its investors to reject Altimo’s proposal, judging the offer price of $0.70 a share to be too low.

A request to the Egyptian Financial Supervisory Authority to waive the original requirements was ultimately turned down.

According to a report from Reuters, VimpelCom had been looking to delist Orascom Telecom and lower costs by closing down its Egyptian office and managing its assets directly.