Egypt's PM, JICA chief discuss boosting investment, education ties at TICAD 9    Egyptian pound wavers vs. USD in early trade    SCZONE showcases investment opportunities to eight Japanese companies    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    Egypt's PM meets Tokyo governor, witnesses signing of education agreements    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Egypt's Sisi, France's Macron discuss Gaza ceasefire efforts in phone call    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



France Telecom finalizes terms of Mobinil buyout
Published in Almasry Alyoum on 12 - 04 - 2012

PARIS/CAIRO — France Telecom has finalized a deal to buy most of its partner's stake in Egyptian mobile operator Mobinil for 1.5 billion euros, leaving the venture with 95 percent French ownership but significant Egyptian board and management presence.
OTMT's shares jumped 5.2 percent in Cairo and Mobinil, which has more than doubled in value this year ahead of the sale, was up 1.2 percent.
France Telecom was already the biggest shareholder in Mobinil, and Egypt is a key part of its effort to expand in high-growth emerging markets in Africa and the Middle East.
The deal, which confirms a preliminary agreement struck in February, recasts the terms of its relationship with Egyptian tycoon Naguib Sawiris, who had a put option to sell out completely to France Telecom starting in September 2012.
Sawiris will instead sell much of his stake, and minority shareholders of listed holding company ECMS can choose to keep their shares or accept a tender offer from France Telecom.
Under the terms of the accord, France Telecom will buy most of the stake held by Sawiris' holding company Orascom Telecom Media and Technology Holding (OTMT) for LE202.5 per share.
It will then make a tender offer at the same price to the minority shareholders of ECMS, the listed portion of Mobinil which was trading at LE179.5 pounds on Thursday, below the tender price.
The deal is subject to regulatory approval in Egypt. The chairman of financial market regulator EFSA, Ashraf el-Sharqawy, said the watchdog would give its response next week.
"Investors are not certain the deal will be completed because ... the companies need to submit the tender offer terms to the regulator," said Mohamed Hamdy, an analyst at CI Capital. "We think the regulator will approve and that the shares will then jump to reflect the deal price."
France Telecom would end up owning 95 percent of Egypt's largest mobile operator if all the minority shareholders accept, while Sawiris would keep 5 percent.
The Egyptian side will retain six of 13 seats on the board and the same voting rights as before.
The new accord will also put into place a new system of call and put options through 2017 to set the terms under which Sawiris' OTMT can exit in the coming years.
France Telecom shares were down 1.7 percent at 10.35 euros by 0834 GMT.
Mobinil was the subject of a drawn-out legal fight between Sawiris and France Telecom several years ago that ended in April 2010 with a new shareholders' agreement.
France Telecom has long said that keeping a local partner in Mobinil was important so as to be seen positively by consumers.
Although Sawiris is reducing his stake, the French company said it would continue to work with his holding company OTMT and was committed to keeping significant Egyptian ownership.
"We believe this transaction provides a solid basis for our continued partnership with OTMT in ECMS," said France Telecom Chief Executive Stephane Richard in a statement.
"France Telecom intends to ensure that, if the conditions allow it, up to 15 percent of ECMS' shares are held by Egyptian shareholders, whether these are private or public companies, or individual shareholders."
This could mean that France Telecom would consider one day selling a stake to a new Egyptian partner or keeping part of ECMS listed on public markets, a spokesman explained.


Clic here to read the story from its source.