The CEO of Egyptian mobile carrier Mobinil has said he would prefer to list more shares on the domestic stock exchange rather than sell a stake to fulfil local ownership requirements.
“We seek to raise our shares in Egypt to 15% and we have three…
The CEO of Egyptian mobile carrier Mobinil has said he would prefer to list more shares on the domestic stock exchange rather than sell a stake to fulfil local ownership requirements.
“We seek to raise our shares in Egypt to 15% and we have three steps to do that, another strategic partner, go to the stock market, or do both,” Yves Gauthier was cited saying by Reuters.
“The most favourable option is to go to the stock market.”
Gauthier did not give a specific timeframe for such a move, saying it depends on the economic situation in the country.
France Telecom currently owns 94% of Mobinil, having increased its stake from 71% last year by buying shares from Orascom, which currently owns 5%.
The French telco has been under pressure from the Egyptian government to sell 15% of its shares to local investors.
Mobinil shares were briefly suspended from trading on the Egyptian Stock Exchange in November, until Mobinil issued a statement to the bourse saying that France Telecom “is currently studying all options available to accommodate the ministry’s request.”
However, a France Telecom spokesperson told TelecomFinance at the time that no sale was imminent.
In a company statement back in April, Stephane Richard, chairman and CEO of France Telecom said: “To further enhance ECMS [Mobinil’s holding company]’s integration in the Egyptian economy, France Telecom-Orange intends to ensure that, if the conditions allow it, up to 15% of ECMS’s shares are held by Egyptian shareholders, whether these are private or public companies, or individual shareholders”.
France Telecom and Mobinil did not respond to today’s enquiries from TelecomFinance in time for the deadline.
