Egyptian telco Orascom Telecom has planned to raise its capital to 14 billion Egyptian pounds ($2.4 billion) from 7.5 billion pounds ($1.3 billion), and is also set to divide the company into two, according to a Reuters report.
The operator is to hold a general meeting on April 13 to approve the company's split, and the capital increase which it intends to use for funding its debt, the report said.
Earlier this month, the shareholders of Russian mobile operator Vimpelcom approved the purchase of $6.6 billion Wind Telecom, which owns Orascom Telecom. The deal is to create the world's fifth largest mobile operator in terms of subscribers, with a footprint in Eastern Europe, Africa, Asia and Italy.
Orascom Telecom has said that the Vimpelcom-Wind deal is to improve its negotiation position with the Algerian government over its operations unit, Djezzy, in the country. Djezzy has been locked in a long-running dispute to nationalise it by the Algerian government. It was stated that the uncertainty over Djezzy's future had complicated the Vimpelcom deal as well as blocked Orascom from selling the unit to the South African telco, MTN. The Algerian government has hired consultants to value Djezzy, which is expected to be completed by the end of May.