An Egyptian court backed Orascom’s appeal to overturn the financial regulator’s approval of France Telecom’s bid for Mobinil and ECMS.
The decision means FT’s bid, which began on December 15, is temporarily halted.
Orascom appealed to the Administrative…
An Egyptian court backed Orascom’s appeal to overturn the financial regulator’s approval of France Telecom’s bid for Mobinil and ECMS.
The decision means FT’s bid, which began on December 15, is temporarily halted.
Orascom appealed to the Administrative Court after the Egyptian Financial Supervisory Authority (EFSA) approved FT’s offer to buy Orascom’s 20% stake in ECMS at E£245 per share.
Orascom says the offer undervalues ECMS, Egypt’s largest mobile operator.
FT has also offered to acquire the Egyptian group’s 29% stake in Mobinil, which owns 51% of ECMS, for E£273.26 per share.
Together, the deals would give FT 71% of ECMS.
However, Orascom has maintained that it would not cede its stakes unless FT offers at least E£273.26 for both its stakes.
EFG Hermes is advising Orascom on its options.
Last week, investment bank Prime Capital published a report saying Mobinil/ ECMS was worth between E£283 (U$52) and E£337 (US$62) per share.
