Orascom Telecom in Talks with France Tel on Mobinil's Fate

Orascom Telecom Media and Technology (OTMT) has admitted it is in talks with France Telecom over the fate of their joint Egyptian mobile services venture, Mobinil. The Egyptian firm said in a statement to the country's stock exchange that a decision was expected to come after a 13 February meeting between the companies.

"The two companies will issue a joint statement before the beginning of the Monday 13/2/2012 trading session," the statement said. Mobinil is one of Egypt's three mobile services providers, and majority owned by France Telecom.

Orascom Telecom (OT) and France Telecom signed a partnership agreement on Mobinil in August 2001. In 2007, after disagreements over Mobinil's budgetting, the two firms lodged a dispute with the International Court of Arbitration of the International Chamber of Commerce.

The court ordered OT to sell its stake in Mobinil to France Telecom in April 2009 at LE273 per share. At the close of 2011, OT was split into two companies following its partial takeover by Russian communications giant Vimpelcom. OTMT is the portion that holds the Mobinil stake.

For its part, the Egyptian Financial Supervisory Authority (EFSA) has suggested FT should submit a mandatory put option for 100 per cent of Mobinil, at the same price offered to OT. Trade on OTMT and Mobinil shares was suspended pending a joint statement by OTMT and France Telecom over the mobile provider's future.