France Telecom is yet to set a time frame for the sale of 15% of its shares in Egyptian mobile carrier Mobinil, despite calls for clarification from the Egyptian Stock Exchange this week.
The France-headquartered telco giant currently owns 94% of…
France Telecom is yet to set a time frame for the sale of 15% of its shares in Egyptian mobile carrier Mobinil, despite calls for clarification from the Egyptian Stock Exchange this week.
The France-headquartered telco giant currently owns 94% of Mobinil, having increased its stake from 71% earlier this year by buying shares from Orascom.
In a company statement back in April, Stephane Richard, chairman and CEO of France Telecom-Orange 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”.
However, the shares have still not been sold and on Sunday, the Egyptian Stock Exchange suspended trading of Mobinil shares until the company responded to enquiries regarding the sale.
The suspension was lifted on Monday after Mobinil sent a statement to the stock exchange clarifying the issue.
The statement announced that France Telecom has been directed by the Egyptian ministry of communications to ensure the sale, according to local media reports.
France Telecom “is currently studying all options available to accommodate the ministry’s request,” the statement said.
However, a France Telecom spokesperson told TelecomFinance today that a sale was not imminent despite recent announcements.
Mobinil has suffered in the wake of Egypt’s political upheaval and posted a net loss of EGP253m (US$41.5m) in 2011, compared to a net profit of EGP1,359m (US$222.8m) in 2010.
