Orascom Telecom in share buyback

SHARE BUYBACK: Orascom Telecom is to purchase some of its shares back off Weather Investments. (Getty Images)

The Italian company Weather Investments said on Tuesday it would sell some of its Orascom Telecom (OT) shares to OT but retain more than a 50% stake in the regional mobile operator.

OT has offered to buy back 106 million of its own shares, about 10.3% of the total, as a way to dispose of cash surpluses it says it cannot easily invest elsewhere.

OT is offering 83 Egyptian pounds ($15.40) for the shares, which last traded on the Egyptian stock exchange on Tuesday at 81.25 pounds.

"Weather Investments announces its intention to participate in the cash tender offer," Weather said in a statement. "Weather... intends to monetise part of its stake [in OT], including through participation in the tender offer, while maintaining its ownership level in OT above 50%," it added.

Egyptian businessman Naguib Sawiris is chairman and chief executive officer of Weather. He is also the chairman of OT.

"Weather will utilise the proceeds of its shares to reduce its outstanding debt," Sawiris said in the statement.

Weather had owned 53.5% of OT before the announcement, an OT spokesman said. (Reuters)

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