Cairo: Global Telecom Holding’s board approved a share buy-back of 524.6 million treasury shares and a bridge loan of $200 million from financial institutions, it said on Monday.
The board approved a price of 7.90 Egyptian pounds($0.4193) for the share buy-back, the company said in a statement, adding it aimed to maximise shareholder value and reduce the company’s share capital as well as support the action to cancel its global depositary receipts (GDR) listing.
“The low volume of trading of the GDRs on the London Stock Exchange does not offer investors the opportunity to trade in meaningful volumes or with any frequency within the public markets,” the statement said.
“Additionally, the regulatory and administrative burden on the company, including associated costs, will be reduced as a result of the cancellation of the GDR listing as the company will no longer have a dual-listing on the London Stock Exchange and the EGX,” it added.
The share buy-back will start on January 19, subject to/sregulatory approval, and expire on Feb. 16, it said.
The board also approved a bridge loan of $200 million, with a tenor of less than one year, the firm said.