Mobinil settlement costs France Telecom €226 million
France Telecom has agreed to pay Orascom $300 million (€226 million) as part of a settlement of a long-running dispute over ownership of ECMS, Egypt’s largest mobile operator.
The pair also revised their shareholder agreement covering ECMS, which trades as Mobinil, granting Orascom the option of combining its Mobinil and ECMS shares in future, for a pre-arranged share price.
France Telecom is the majority shareholder in Mobinil Holdings, which holds a controlling 51% stake in Mobinil.
The French incumbent’s bid to take a direct stake in Mobinil sparked a fierce legal battle with Orascom, which owns 28.75% of Mobinil Holdings, but also has a 20% direct stake in Mobinil.
Both firms called a truce last week, after an Egyptian court blocked France Telecom’s bid earlier this month.
Orascom is reportedly now in merger talks with MTN, Africa’s largest mobile operator, and has suspended trading of its depository shares in London.