France Telecom, Orascom reach accord over Mobinil
France Telecom and Egypt's Orascom Telecom have ended a long-standing battle for control over Egyptian mobile operator ECMS, known more commonly as Mobinil.
The operators have signed a truce that will put an end to all disputes over their joint investment, the companies announced.
As part of the deal, the parties will draw up a revised shareholder agreement – but will not change existing ownership structure or voting rights, the companies said in a joint statement.
Mobinil is Egypt's largest mobile operator.
Under the current complicated ownership structure, Mobinil is 51% owned by Mobinil Holdings, which is 71.25% controlled by France Telecom and 28.75% by Orascom, WSJ said.
But Orascom also owns a 20% direct stake in Mobinil, making ownership rights unclear.
The move by new CEO Stephane Richard to reach a compromise over the deal is another sign of his differing approach to predecessor Didier Lombard, who was determined not to cede to Orascom, FT.com said.