Global Telecom To Sell 51% Interest In Orascom Telecom Algerie

(RTTNews) - VimpelCom Ltd (VIP) and Global Telecom Holding S.A.E. (GLTD.L) announced the signing of a share purchase agreement for the sale by Global Telecom Holding of a 51% interest in Orascom Telecom Algerie SpA to the Fonds National d'Investissement, the Algerian National Investment Fund, for a purchase consideration of US$2.643 billion. Global Telecom Holding said all proceeds will be used to pay down the outstanding shareholder loans provided by VimpelCom to it.

Orascom Telecom Algerie SpA will distribute a dividend of US$1.862 billion to Global Telecom Holding, immediately prior to the closing of the transaction, which is expected to occur by the end of 2014. The total dividends and proceeds due to Global Telecom Holding at closing are expected to amount to US$4.0 billion, net of all taxes and after the settlement of all outstanding disputes between the parties and the payment of associated fines.

Global Telecom Holding and Fonds National d'Investissement will enter into a shareholders agreement, effective as of closing. Global Telecom will continue to exercise operational control over Orascom Telecom Algerie SpA.

Global Telecom Holding has suspended its current arbitration against the Algerian State initiated on April 12, 2012 and, upon closing, the parties to the arbitration will settle the arbitration.

As a result of the settlement of the disputes, both Global Telecom Holding and VimpelCom will take a one-off charge of US$2.0 billion in their 2013 Financial Statements.