Shareholders in Orascom Telecom Media and Technology (OTMT) have approved plans to sell most of the firm’s stake in Egyptian mobile operator ECMS to France Telecom in an EGP6 billion (US$1 billion) deal, reports Zawya Dow Jones.
"The shareholders also approved the delegation of authority to each of the executive chairman and managing director of the company [OTMT] to finalise negotiations and execute binding agreements in connection therewith," said OTMT in a statement late last week.
Last month OTMT and France Telecom signed a non-binding deal proposing that the French firm would acquire “most” of OTMT’s holding in ECMS’ majority holding company at EGP202.50 a share – before launching a tender offer at the same price for the stock which is currently in free float.
In a statement at the time, France Telecom said that OTMT would retain “similar voting rights and board representation” as currently in place, and would remain its “strategic local partner” in the country, providing strategic and management oversight over ECMS.
Depending on shareholder uptake of the offer, France Telecom could end up owning up to 95 per cent of the Egyptian operator – with OTMT retaining a five per cent economic interest and 30 per cent voting rights.
ECMS – which trades under the name MobiNil – is currently the second largest operator in Egypt, with a 39 per cent market share, behind Vodafone Egypt on 44 per cent.
OTMT is the firm that was spun off from Orascom Telecom Holding (OTH), following the latter’s merger with VimpelCom.
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