Paris/Cairo: France Telecom will pay Egypt's Orascom Telecom $300 million (Dh1.1 billion) in a settlement deal over ownership of Mobinil, Egypt's largest mobile operator by subscribers, the French firm said yesterday.
Mobinil will also acquire Orascom internet assets LINKdotNET and Link Egypt for $130 million under the terms of the final deal, France Telecom said.
The two firms reached a broad settlement agreement this month to end an acrimonious legal battle over Mobinil that had lasted years. The firms remain partners in Mobinil.
Orascom and France Telecom have agreed not to transfer any shares between them, and Orascom Telecom will not seek to increase its 20 per cent direct stake in Egyptian Company for Mobile Services (ECMS), known by its Mobinil brand name.
The new agreement will supersede an existing deal regarding the management of the two firm's joint holding company, which holds 51 per cent of ECMS, FT said.
Orascom will be granted a put option for both its nearly 29 per cent stake in the holding firm and its direct ECMS stake.
The put option, to sell to France Telecom only, will be valid from September 15 to November 15 in 2012 and 2013 and will increase in value from 221.70 Egyptian pounds (Dh147) at the signing to 248.50 pounds at end-2013 for ECMS shares. The put can also be exercised at any time in a limited number of deadlock situations, FT said.
- $130m: acquisition of Orascom internet assets
- 20%: stake for Orascom in ECMS
- 29%: equity for Orascom in holding firm
