Orascom Telecom Media and Technology Holding (OTMT) will do its best to enable its investment arm, Beltone, to complete CI Capital’s acquisition deal, a senior official said.
OTMT spent the last few weeks in discussions with the Egyptian Financial Supervisory Authority (EFSA) to respond to its questions and provide documents that approve the company’s correct position regarding the charges of committing a legal violation.
The EFSA has announced that a violation committed by OTMT contributed to a delay in the acquisition deal. When the controlling shareholder of Beltone was dividing Orascom Telecom to Orascom Telecom and Global Telecom in 2012, he provided the EFSA with a request to exclude a compulsory bid to transfer ownership of 51.7% from Orascom Telecom owned by Wids Investment Company to OTMT Acquisition.
The aim of the current talks with EFSA, regarding the violation in ownership transfer, is the completion of the deal. There is no action so far concerning the conclusion of reconciliation.
The company will announce any information concerning its discussions with EFSA, the source added.
The Commercial International Bank’s (CIB) board agreed last Thursday to extend the order to complete the deal for a period of 15 days—starting from 12 to 26 May. This is the fourth extension to complete the deal.
Orascom announced on Thursday evening that it received a letter from Beltone on Wednesday. The letter stated that it has submitted a pledge to CIB to pay EGP 50m in advance to ensure its seriousness in completing the deal.
EFSA Chairperson Sherif Samy said that Orascom Telecom’s willingness to hold talks with the EFSA’s obligation management is a step towards reconciliation regarding the ownership transfer violation.
In such cases, the company would pay a fine, and if the reconciliation failed the company would file a lawsuit against the company that committed the violation, Samy added.