Veon has revoked its offer to acquire GTH (Global Telecom Holding)’s assets in Pakistan and Bangladesh.
The operator group, which owns 57.7% of GTH, cited “recent events surrounding the Pakistani Rupee” and “the reaction of the offer by GTH minority shareholders, which suggests that approval would not have been forthcoming” as factors in its decision to drop the offers.
Minority shareholders own the remaining stakes in GTH, and Veon made an attempt to buy out these investors at the end of last year. The proposal was shelved when it failed to secure the approval of the required two thirds of minority shareholders. Veon has stated that it will look into continuing its relationship with the GTH and its investors.
GTH confirmed that it would “continue to explore alternate financing options and will communicate more details in due course”, adding that the deal would have brought in $2.55 billion. The company noted that over the next couple of years it will need to address “significant debt maturities, interest payments and capital requirements”.
In September, Veon was forced a proposal to sell the tower unit of its Pakistani operation Jazz to Tanzanite Tower after regulators refused to grant approvals before the stipulated deadline.
