CAIRO: Orascom Telecom Media and Technology (OTMT), listed in the Egyptian Exchange, announced Monday it reached an agreement to sell its stake in the Egyptian Company for Mobile Services (ECMS), to the French company Orange in return for 209.6 million euros ($233 million.)
ECMS is operating under the Mobinil brand and is one of Egypt’s leading mobile telecom providers. Under the agreement between Orange and OTMT, which is owned by Egypt’s business tycoon Naguib Sawiris, Orange will purchase all the shares and voting rights held directly or indirectly by OTMT in the ECMS, according to a Monday statement from OTMT.
“This transaction will be completed through the exercise of Orange’s call option under the shareholders agreement signed by the two parties in April 2012. The parties expect that the transaction will be finalized by the end of Q1 2015,” OTMT stated.
OTMT’s direct and indirect interests in ECMS will be transferred to Orange for a total price of 209.6 million EUR. This includes OTMT’s 5 percent direct stake in ECMS at 280.7 EGP per share, and 28.75 percent of the voting rights of MT Telecom (MTT), the holding company of ECMS that is fully owned by Orange, for 45.8 million EUR.
The transaction will increase Orange’s stake in ECMS from around 94 percent to roughly 99 percent of the capital.
“Through this investment, Orange confirms its commitment to the Egyptian market as one of its most important assets in the region and its largest market in terms of customers,” added the statement.