Egypt After 2025: Navigating a Critical Inflection Point    Spot Gold, futures slips on Thursday, July 17th    Egypt's EHA, Huawei discuss enhanced digital health    Egypt expresses condolences to Iraq over fire tragedy    Egypt, Oman discuss environmental cooperation    Egypt's Environment Minister attends AMCEN conference in Nairobi    At London 'Egypt Day', Finance Minister outlines pro-investment policies    Sukari Gold Mine showcases successful public–private partnership: Minister of Petroleum    Egypt's FRA chief vows to reform business environment to boost investor confidence    Egyptian, Belarusian officials discuss drug registration, market access    Syria says it will defend its territory after Israeli strikes in Suwayda    Pakistan names Qatari royal as brand ambassador after 'Killer Mountain' climb    Health Ministry denies claims of meningitis-related deaths among siblings    Sri Lanka's expat remittances up in June '25    EU–US trade talks enter 'decisive phase', German politician says    Egypt's Health Min. discusses drug localisation with Sandoz    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Vimpelcom seeking new terms for Orascom, Wind deal

MOSCOW/CAIRO: Vimpelcom wants to renegotiate a $6.6 billion bid for control of telecoms assets owned by Egyptian businessman Naguib Sawiris, who said he would consider changes to the shareholder structure but not the value.
New terms could be the only way the Russian mobile phone company can save the deal for Orascom Telecom and Italian operator Wind after Norwegian shareholder Telenor refused to give its support.
Amsterdam-headquartered Vimpelcom said it would send chief executive Alexander Izosimov to negotiate further with Sawiris and his Weather vehicle about a new set of terms, which the Orascom owner said he would review.
"The deal will not change in value or conditions. The only condition that will change is specific to the shareholders' agreement," Sawiris told Al Arabiya television on Tuesday.
He added that he could receive a new offer this week.
While Telenor did not elaborate on its objection on Tuesday, analysts have said the firm objects to undisclosed requests by Sawiris to have more board members and better rights than his 20 percent stake in the combined company would allow.
Investors have also questioned the price tag due to uncertainty over the future ownership of Orascom's lucrative Algerian unit Djezzy — which the Algerian government wants to nationalize.
Some corrections
Alexei Reznikovich, chief executive of Vimpelcom's biggest shareholder Altimo, told Reuters earlier this month that the shareholder structure was still being discussed.
"I think Weather will have rights (in the united company) proportional to the other big shareholders. There certainly should be some corrections ... it is currently subject to negotiations," he said in an interview.
Vimpelcom shareholder rights are a particularly sensitive issue given they require changes to a shareholder agreement signed between Telenor and Russia's Alfa Group-owned Altimo that ended a bitter five year long shareholder battle.
"The biggest issue is control. Easing the rules of the shareholder agreement would not be in the interests of Telenor ... This could be a final negotiating tactic for Sawiris to drop his demands," Nomura analyst Jean Kaplan told Reuters.
He added that he still backed the deal to go through — partly due to the weak position of the debt-saddled Sawiris.
"Given the debt maturing profile of Orascom and its issues taking money out of Algeria, Sawiris is not in the best negotiating position," Kaplan said.
Long negotiation
Meanwhile VTB analyst Viktor Klimovich said the Algerian question continues to hang over the Vimpelcom-Orascom deal and may yet have an influence on the final offer.
"The price of the deal is likely to be reconsidered in light of the worsening situation in Algeria," he said.
"We would not be surprised if there were to be a long negotiation process ... potentially up until the final decision on the nationalization price which might not be available before the second quarter of next year."
Algeria has shown no sign of abandoning moves to nationalize Djezzy, Orascom's top revenue generator, and has sought advisers to kick-start the valuation process.
Vimpelcom shares closed up 2.7 percent in New York on Monday on hopes it will not overpay as it tries to expand to complement its maturing core markets in the former Soviet Union.
Vimpelcom said on Monday six of its nine directors voted in favor of the Orascom/Wind transaction, with Telenor's nominated directors voting against. No agreement was reached on a shareholder-related agreement that was a condition of the deal. –Additional reporting by Wojciech Moskwa and John Bowker


Clic here to read the story from its source.