By Telecom
Lead Team: Mobile major France Telecom is likely to spend about $2 billion to
buy stake in their Egyptian wireless venture.
France
Telecom has reached a preliminary agreement with Sawiris’s Orascom Telecom
Media & Technology Holding over Egyptian Co. for mobile services, the
operator known as Mobinil, at 202.5 Egyptian pounds ($33.54) a share.
France
Telecom is refocusing its business on fast-growing emerging markets as mobile
revenue in Europe stalls. The company announced the sale of its units in
Switzerland and Austria, and in the past two years struck deals to enter
Morocco, Iraq and the Democratic Republic of Congo.
Billionaire
Naguib Sawiris plans to retain a 5 percent economic interest in the Cairo-based
operator. The Mobinil shares France Telecom aims to take over are valued at
11.9 billion Egyptian pounds ($2 billion) based on the offer price.
Mobinil
competes with Vodafone Group.
As part of a
settlement in April 2010, Sawiris gained an option to sell his stake in the operator
to France Telecom during certain periods beginning in September 2012, at a
price that would increase over time from 221.7 Egyptian pounds per share later
this year to 248.5 pounds next year.
France
Telecom owns about 71 percent of Mobinil Telecom, the holding company, while
Orascom owns the remainder.
Recently,
France Telecom-Orange entered into an agreement with its partner Mid Europa
Partners to sell their combined 100 percent stake in Orange Austria to
Hutchison 3G Austria, a subsidiary of Hutchison Whampoa.
France Telecom-Orange to sell 35% stake in Orange Austria
France
Telecom-Orange currently holds a 35 percent stake in Orange Austria and MEP a
65 percent stake.
Orange announces management change at new growth activities
division
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