Global Telecom to Settle EGP 2 Bln Tax Dispute with Egypt

Egyptian Tax Authority is about to settle an agreement with Global Telecom Holding (GTH) to end a multi-billion dispute over taxes. The agreement stipulates that GTH pays EGP 2 billion to the tax authority to settle the matter, which records back to the year 2018.

According to sources, GTH representatives will meet with Finance Minister Mohamed Maait this week to finalize the settlement.

In the meantime, majority shareholder Veon Holdings is looking to acquiring the remaining 42.3 percent of GTH. "Veon will also be present in the meeting with the government," sources said.

Market observers have argued that the ongoing dispute, involving both retail and institutional investors, has dampened the Egyptian stock market (EGX) sentiment.

A final agreement could begin this month, in which Veon has offered to pay the recognized amount to settle the dispute.

The compensation will be paid in two installments, one after concluding the settlement and the other after Veon’s complete acquisition of GTH.

Veon, which recently took over negotiations on behalf of GTH, is expected to pay the settlement in USD, representing a good opportunity for Egypt to increase its foreign reserves.

GTH is a leading international telecommunications company operating mobile networks in Algeria (Djezzy), Pakistan (Jazz), Bangladesh (Banglalink) with a total number of customers exceeding 100 million.

Global Telecom Holding is majority-owned by the VEON Group. The Telecom company is traded on the Egyptian Stock Exchange under (GTH.CA).