Global Telecom Holding (GTH) on Wednesday announced signing a settlement deal worth $136 million (EGP 2.3 billion) with the Egyptian Tax Authority, according to a statement to the Egyptian Exchange (EGX).
Egypt’s Financial Regulatory Authority (FRA) approved the mandatory tender offer submitted by VEON Holdings B.V. for the purchase of up to 1.997 billion shares in emerging markets telecom operator GTH, representing about 42.31% of GTH’s shares, at an adjusted price of EGP 5.08 apiece instead of EGP 5.3, the statement added.
GTH received a unilateral deed poll from VEON Holdings to increase the principal amount of its existing revolving credit with GTH by $100 million.
In May, GTH was said to be nearing an agreement worth EGP 2 billion with the Egyptian Tax Authority to end a dispute over taxes.
Under the tax settlement deal, GTH will pay the due amount over two payments worth $53.7 million and $82.3 million.
During the first quarter of 2019, GTH reported a net profit of $54.3 million, compared to $31.8 million in the prior-year period.
Revenues declined to $688 million during the three-month period ended 31 March from $699 million in the same period of 2018.
As for standalone business, the company suffered losses of $8.1 million in Q1-19 from $24.6 million in Q1-18.