Orascom to increase ties with parent VimpelCom
Egypt’s Orascom Telecom Holding (OTH) is to increase its ties with Russian parent Vimpelcom with the intention of improving business efficiency.
The announcement comes after VimpelCom took control of Orascom last year for approximately $6 billion.
Orascom and VimpelCom will provide each other with technical and commercial services for two years, charging fees at accounting cost and a mark-up of 5%. The amount paid to VimpelCom will be limited to $3.5 million each year.
OTH also said it plans to change its name to Global Telecom Holding SAE as part of the VimpelCom acquisition and demerger, with the company and its subsidiaries “required to cease using the Orascom name, designs and logos before the end of 2012.”
In another announcement, Orascom said it intends to take control of Canadian business Globalive Investment Holding Corp, the parent company of WIND Canada and Globalive Canada, after changes in the country’s ownership laws.
The Egyption telco plans to convert its 32.02% voting shares to 65.08% but will require regulatory approval to do so. This is expected by early next year.
All three proposals will be submitted to shareholders for approval next month.