Russia's Altimo Launches Takeover Bid for Orascom Telecom
Published on: 1st Apr 2013
Note -- this news article is more than a year old.
Russia's Altimo has launched a bid to buy the remainder of Egypt's Orascom Telecom Holding that it does not already control through its stake in VimpelCom. The deal values the company at around USD3.67 billion, a small premium on the current stock market valuation of USD3.4 billion.
Altimo owns just under 48% of VimpelCom which in turn already owns 52% of Orascom Telecom. The deal would give Altimo effective control over the company through its direct and indirect holdings.
Orascom confirmed the tender offer had been placed, but said that it has not itself been notified directly. Orascom said in a statement that it learnt of the bid via a notification sent to to the Egyptian stock market by Altimo's holding company.
Orascom owns mobile networks in Algeria, Canada, Central African Republic, Pakistan, Bangladesh, Burundi and Zimbabwe.
The company has been looking to sell its Canadian subsidiary, and the move by Altimo may be seen as an attempt to block the deal by taking control of the firm before the sale can be agreed.