Orascom Telecom plans share buyback
Shares rally on LSE as Egyptian operator seeks approval for share buyback
Egyptian telecom giant Orascom Telecom is planning to buyback 65 million shares during the next three months.
The operator asked the Egyptian Capital Market Authority and The Egyptian Exchange for approval for the repurchase of the shares, which have a current market value of some EGP1.118 billion ($201 million) and represent 7.2% of the company’s issued shares.
Orascom Telecom intends to buyback shares listed on the Cairo and Alexandria Stock Exchange, or the London Stock Exchange, Amr Abaza, Orascom Telecom’s corporate treasury officer, told Reuters.
News of the buyback appeared to halt recent declines in the value of Orascom Telecom’s shares, which some analysts had attributed to its failure to stage a share buyback sooner. Shares rose 11.62% to close at $16.24 on the London Stock Exchange on Friday, after reaching a 52 week low of $14.30 during Thursday trading.