Global Telecom Holding on Sunday announced it plans to raise its capital by EGP 11.2 billion ($624.7 million) through issuance 19.3 billion shares at a par value of EGP 0.58 per share.
The capital increase proceeds will be used to cover the company’s liabilities until the end of 2019, GTH said in a statement to the Egyptian Exchange (EGX).
The company will also use part of the proceeds to pay interests worth $118 million (EGP 2.1 billion) due this year, in addition to $500 million bonds due in 2020 and other bonds worth $700 million due in 2023.
The Cairo-based firm will also allocate $500 million (EGP 5.4 billion) of the proceeds to refinance bonds due in the first half of 2019 in Bangladesh or to reimburse a part of the company’s debt.
GTH will also pay $100 million (EGP1 .8 billion) for the revolving credit facility (RCF2) to VEON Holdings B.V.
The proceeds will be also used to pay a $40 million (EGP 716 million) interest of the RCF2 to VEON.
The technical support cost worth $91 million (EGP1.6 billion) approved by GTH’s general assembly will be paid to VEON.
The company will allocate $15 million (EGP 268.5 million) of the proceeds for the company’s general activities.
GTH’s board of directors last agreed to raise the issued capital to EGP 13.9 billion from EGP 2.73 billion.
The board appointed NAEEM Holding as an independent financial advisor to evaluate the fair value (FV) of GTH’s stock. The company has set the FV of the stock at EGP 5.31 per share.