Orascom Telecom is gearing up to sell all but a 5% stake in Egyptian operator Egyptian Company for Mobile Services (ECMS) to France Telecom.
The pair propose that Orascom sells the bulk of its holdings in ECMS and its mobile subsidiary MobiNil to France Telecom for 202.5 Egyptian Pounds (€25.32) per share. France Telecom then plans to launch a tender offer for ECMS at the same price, and adjust the MobiNil shareholders agreement to account for the new ownership structure.
Orascom would maintain similar voting rights in ECMS following the transaction, and remain the local strategic partner for France Telecom, managing the direction of ECMS.
Under the current ownership structure, France Telecom holds 71.25% of MobiNil with the remaining 28.75% held by Orascom, giving the pair respective stakes of 36.4% and 34.6% in ECMS.