Orascom Tel completes $800m rights issue
Cairo, March 15, 2010
Egypt's Orascom Telecom said it had covered the unsold portion of a $800 million rights issue to ensure liquidity as it challenges an Algerian claim for back taxes.
Orascom had covered 99.67 percent of the rights issue when it closed earlier this month. Existing shareholders were given until March 10 to subscribe to the remaining 0.33 percent in a second offering.
Orascom said both ordinary shares and GDRs had been oversubscribed.
The rights issue was launched in part to ensure liquidity while the company fights a bill for up to $647 million in back taxes Algeria says is owed by its Djezzy mobile subsidiary.
Algerian sources told Reuters in February the government wanted Orascom to exit the country. Friday, Algerian Prime Minister Ahmed Ouyahia said Orascom had told his government it had no intention of leaving the country.-Reuters
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