Balance sheet restructuring focuses OT on core assets
Orascom Telecom Holding (OTH) has issued an announcement outlining progress in strategy of restructuring its balance sheet and extending its focus on core assets. OTH is an Egyptian-based GSM (Global System for Mobile Communication) and Internet services operator in the Middle East, Africa and Pakistan.
OT has made an initial debt repayment of $25 million to Alacatel, Motorola and Siemens, and is seeking to discuss a long-term debt restructuring arrangement with these primary network equipment suppliers. In addition, the company will swap $90 million of loans made to OTH into equity in its various subsidiaries.
OTH has implemented a management fee structure agreement with its major subsidiaries—MobiNil, FastLink, Mobilink, Orascom Telecom Algeria and Orascom Telecom Tunisia—and will accordingly be receiving a specified percentage of gross revenues in exchange for providing operational management services to the aforementioned subsidiaries.
OTH has completed the sale of its shares in Sabafon, its GSM operation in Yemen, to the Al-Ahmar Group, for a net consideration of $18.5 million. Regarding the sale of its Sub Saharan African assets, OTH has signed binding agreements for 10 of the 14 African assets. Moreover, Telecel has entered into a Memorandum of Understanding (MoU) with its largest creditor to restructure its debt and that of its subsidiaries.
regional mobile phone operator has decided to postpone its planned capital Increase, considering the company’s balance sheet restructuring plan and current equity market conditions in the telecom sector. — (menareport.com)
© 2002 Mena Report (www.menareport.com)