France Telecom secures Mobinil buyout deal
France Telecom has finalized the terms of a deal to buy out most of Egyptian mobile operator Mobinil for up to €1.5 billion ($1.98 billion).
The arrangement with Orascom Telecom will leave France Telecom with an up to 95% share of Mobinil.
Sawiris will sell most of its stake in Mobinil, and will give minority shareholders in Mobinil holding company ECMS the option of keeping their shares or accepting a 202.5 Egyptian pound ($33.5 million) per share tender offer.
If all accept, France Telecom will have the 95% share, but France Telecom has stated it will try to ensure that ECMS continues to be 15% owned by Egyptian shareholders.
France Telecom was already the largest shareholder in Mobinil. Orascom will maintain similar voting rights that it had prior to the agreement.
Orascom and France Telecom first announced the deal in February. In 2010, the companies finally put an end to a long-standing battle for control of Mobinil.