Orascom Telecom Media and Technology (OTMT) is confident that the sale of most of its stake in mobile operator Mobinil to France Telecom (FT) will take place within the next few weeks, the company said in an update to the market.
Mobinil, also known…
Orascom Telecom Media and Technology (OTMT) is confident that the sale of most of its stake in mobile operator Mobinil to France Telecom (FT) will take place within the next few weeks, the company said in an update to the market.
Mobinil, also known as Egyptian Company for Mobile Services (ECMS), is currently 36.33%-owned by FT and 34.67% by Naguib Sawiris’s OTMT. The remaining 29% is free float.
Earlier this month, the companies had said that after buying a stake in ECMS at E£202.5 (US$33.6) per share, FT would launch a tender offer for ECMS’ free float at that same price.
OTMT is expected to retain a 5% stake in ECMS. In today’s [23 February 2012] note to shareholders, the Egyptian company added that it is currently in the process of negotiating a put option with FT for its remaining interest in ECMS. This option would be exercisable between 2015 and 2017.
OTMT expects to receive proceeds worth E£6bn (US$995m) from the sale of the stake. These proceeds could go towards the distribution of a special dividend or a share buybacks, among other possible uses, OTMT said.
The mobile operator is expected to remain listed on the Egyptian Exchange following the transaction.
