(In third paragraph, corrects to million, from billion.)
CAIRO Oct 21 Egypt's Orascom Telecom Holding
(OTH) and its Russian parent Vimpelcom have
agreed to provide one another with technical and commercial
services to improve the efficiency of their businesses, Orascom
said on Sunday.
Orascom also said it was changing its name to Global Telecom
Holding SAE after Vimpelcom took control of the Egyptian company
last year in a deal worth around $6 billion.
The two companies will provide the services for two years,
charging fees at accounting cost plus a mark-up of 5 percent,
with the amount payable to Vimpelcom capped at $3.5 million
annually, Orascom said.
It also said it planned to take control of Canada's
Globalive Investment Holding Corp. after Canada changed the law
governing foreign ownership of local businesses.
The law allows Orascom's Canadian holding company to convert
non-voting shares in Globalive Investment Holding into voting
shares, taking its proportion of the voting shares to 65.08
percent from 32.02 percent, the Egyptian company said.
"The changes will involve, amongst other things, the
restructuring of OTH's shareholder loans to the GIHC group and
the cancellation of accrued interest of approximately 450
million Canadian dollars ($458.13 million)," Orascom said.
The change requires the approval of Canadian investment
authorities, which the company expects by early next year.
Orascom's founder Naguib Sawiris received a stake in
Vimpelcom under the tie-up sealed in April 2011. He kept his
stake in Orascom's Egyptian mobile phone business Mobinil before
selling most of it to France Telecom this year.
Orascom will submit the name change, the new arrangement
with Vimpelcom and the Canadian shareholding changes to its own
shareholders for approval next month.
Orascom is a name used by other companies controlled by the
OTH shares fell 0.5 percent on the Egyptian Exchange on
Sunday, in line with a 0.6 percent drop by the benchmark index
($1 = 0.9823 Canadian dollars)
(Writing by Tom Pfeiffer; Editing by Edmund Blair)
(email@example.com; +202 2578 3290; Reuters