Orascom shareholders approve $800m rights issue

Shareholders in Orascom Telecom agreed on Sunday to an $800 million rights issue with a view to support the company's balance sheet.

Speaking on the issue, Orascom Telecom's CEO Khaled Bichara said, "We did the capital increase because some of the rating agencies came and said there was a question mark on the cash flow of Orascom."

Meantime, the Egypt-based Orascom Telecom is busy in resolving a dispute with Algerian tax authority that charged it with $596.6 million in back taxes plus penalties for not keeping proper accounts.

But, Orascom Telecom, the international mobile networks operator, said it would appeal against the tax.

According to the Algerian rules, Orascom Telecom will have to pay up to 20% of the disputed tax amount upfront as a condition for its appeal to be considered.