Orascom in advanced talks with FT over Mobinil

Orascom Telecom has confirmed it is in talks with France Telecom over the future of their Egyptian mobile network joint-venture, Mobinil.

Responding to queries from the Egyptian Stock Exchange regarding rumours of talks, Orascom Telecom Media and Technology Holding confirmed in a brief statement that it is "in an advanced stage of negotiations with France Telecom concerning Mobinil."

The company holdings are slightly complex. The Egyptian mobile network is owned by a holding company – called ECMS – which is in turn 29 per cent listed on the stock exchange, 20 per cent owned by Orascom Telecom and the remaining 51 per cent is owned by another holding company, also called Mobinil.

Following a legal dispute that was settled in 2009, the holding company is wholly owned by France Telecom, giving it 51 per cent of the company and effective control of the mobile network.

It was reported last year that France Telecom could trigger a put-option to buy Orascom Telecom’s 20 per cent stake in ECMS if certain conditions were not met as part of the parent group’s sale to Russia’s VimpelCom.

If that put-option is exercised, then France Telecom could theoretically increase its stake to 71 per cent.