Global Telecom Surges in Cairo After Veon Offers Funding Support

(Bloomberg) -- Global Telecom Holding climbed the most allowed in a day after its majority shareholder offered to support the company’s funding requirements and look at taking it private.

The shares jumped about 10 percent, the most in three months, in Cairo. They have lost half their value in the past 12 months.

Veon Ltd. agreed to support Global Telecom’s "immediate funding requirements related to the servicing of certain debt obligations and an interest payment to external bondholders," the company said in a statement. It also said Veon is exploring the option of taking the company private, without providing more details.

Global Telecom postponed its general assembly meeting to consider a rights issue to March 27 from Jan. 28 to allow its board more time to consider recent developments. Global Telecom had sought to raise 11.2 billion pounds ($625 million) from the offering.

Egypt’s Financial Regulatory Authority said earlier Sunday it’ll take steps to protect the rights of minority shareholders.

Veon, which owns about 58 percent of Global Telecom, last year withdrew a mandatory offer to buy out minority shareholders. Global Telecom operates mobile networks in Africa and Asia.

©2019 Bloomberg L.P.

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