Orascom will take its row with France Telecom to the Administrative Court after losing an appeal over the sale of ECMS, Egypt’s largest mobile operator.
In a statement, the Cairo-based company said it would ask the court to annul the financial…
Orascom will take its row with France Telecom to the Administrative Court after losing an appeal over the sale of ECMS, Egypt’s largest mobile operator.
In a statement, the Cairo-based company said it would ask the court to annul the financial authority’s decision to approve FT’s E£245 tender offer for Orascom’s 20% stake in ECMS.
The regulator approved FT’s bid in early December. Orascom promptly appealed with the Grievance Court to overturn the approval, but its appeal was rejected on January 2.
ECMS is 51% owned by Mobinil, itself a 71-29 joint venture of FT and Orascom.
If FT’s latest bid goes unopposed, the French operator would acquire Orascom’s 29% stake in Mobinil for E£273.26 per share and Orascom’s 20% in ECMS for E£245 per share.
This would give FT 71% of ECMS.
EFG Hermes is advising Orascom on its options. The Egyptian operator has repeatedly maintained that it would only accept a bid that matches the offer made for Mobinil’s shares.