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Orange to raise stake in Egypt’s Mobinil
13 February 2012
France Telecom Orange in talks with Orascom to buy stake in Egyptian mobile operation
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France Telecom is in discussions to increase its share in Egypt’s Mobinil, which has a market value of around $2.3 billion. The operator is discussing the acquisition of a part of Naguib Sawiris’s stake in the venture.
Following a report by Bloomberg, France Telecom Orange has confirmed that discussions are taking place with Orascom Telecom Media & Technology. This is the company controlled by Egyptian businessman Sawiris which, in a complex 2011 deal, sold a 51% stake to VimpelCom via a purchase of Wind Italy — but Mobinil was kept out of that deal.
The Orange statement says that OTMT will sell most of its Mobinil to France Telecom, which would then launch a tender offer for the free float of the Egyptian business. Orascom would retain just a 5% interest.
France Telecom Orange holds around 71% of Mobinil Telecom, the holding firm controlling 51% of Mobinil. Sawiris’s OTMT owns 20% stake in Mobinil, and 29% of the holding company. GTB
Further reading from Global Telecoms Business:
VimpelCom retains brands but aims to save $2.5bn in ... 09 Feb 2012
Sawiris 'seeks expansion in Europe, Africa' 07 Feb 2012
Orascom to invest $70m in Zimbabwe unit 28 Nov 2011
VimpelCom gets approval for Wind deal 18 Mar 2011