Orascom Telecom Holding (OTH) has announced that it is planning a rights issue to raise around US$800 million from its shareholders. The proposed Rights Issue is intended to further strengthen the balance sheet and ensure OTH's liquidity including financing needs for the Group in the case where there is no immediate resolution of the tax dispute in Algeria.

Weather Investments, OTH's largest shareholder, which owns approximately 50.6% of the outstanding shares, has communicated to the Company its commitment to subscribe for a minimum of its existing pro rata share in the Rights Issue. The proposed Rights Issue is subject to shareholders' approval at the EGM to be held on December 27, 2009. OTH has appointed Bank of America Merrill Lynch, BNP Paribas, Citigroup Global Markets Limited, Credit Suisse Securities (Europe) Limited and EFG-Hermes to advise on the Rights Issue.

Naguib Sawiris, Executive Chairman of OTH commenting on the transaction, said "We occupy a unique position as a leading operator of networks in the high growth markets of the Middle East, Asia and Africa. This transaction will enable the Company to strengthen its balance sheet to benefit fully as conditions improve across our core markets while we work towards the optimal resolution of the situation in Algeria. We have chosen to use a Rights Issue at par as per common practice on the Egyptian Capital Markets".