An attempt by Russia’s Altimo to buy the outstanding 49 per cent of Egypt’s Orascom Telecom has failed after just 16 per cent of the shares were tendered for the buyout.
Altimo already owns just under 48 per cent of VimpelCom which in turn already owns 52 per cent of Orascom Telecom, and last month launched a bid to buy the outstanding shares in the company, through a Cyprus based holding company.
The deal would have given Altimo effective control over the company through its direct and indirect holdings.
The takeover bid valued Orascom Telecom at around US$3.67 billion, a small premium on the then stock market valuation of US$3.4 billion.
However, the board of directors at Orascom Telecom rejected the takeover bid as undervaluing the company, and with just 16 per cent of the shares tendered, it would appear that the majority of the shareholders agreed.
The tender offer required that at least 26.6 per cent of the outstanding shares be tendered for the purchase to go ahead.
Although a bad result for the Russian buyer, it is seen as positive for the Cairo stock exchange, which was faced with the delisting of yet another company from its market.