Telecom Holding (GTH) shareholders have completed the sale of 37 percent of the company's shares in a mandatory tender offer (MTO) launched by majority shareholder Veon to acquire 42.3 percent of the company.

Shareholders offered to sell the 753 million shares when the MTO kicked off on 2 July, a few days after GTH reached a dispute settlement with Egypt’s Tax Authority.

Meanwhile, GTH has approved the updated valuation report prepared by independent financial advisor Grant Thornton in relation to Veon’s bid to acquire GTH’s operating assets and the MTO.

The report valued GTH at EGP 4.93 per share, which is lower than the EGP 5.08 MTO price.

On Wednesday, Egypt's Ministry of Finance announced that Telecoms operator VEON Ltd has settled a tax dispute with Egypt.

Amsterdam-based VEON has secured approval from Egypt’s Financial Regulatory Authority (FRA) to buy the outstanding 42.3 percent stake in GTH for $600 million, or EGP 5.08 per share, after agreeing to settle the tax liability for $136 million.

The mandatory tender offer must still be approved by other Global Telecom shareholders at a meeting scheduled for 27 August.

VEON has telecom operations in Russia, Asia and North Africa.

It holds a 55.6 percent stakes in Global Telecom, which operates the Djezzy network in Algeria, Mobilink in Pakistan and Sheba Telecom in Bangladesh.

VEON acquired (GTH)'s assets in 2011 when it took control of Egypt’s Orascom Telecom.