Orascom, France Telecom end Mobinil dispute
15 Apr 2010
(MENAFN) France Telecom SA and Orascom Telecom Holding SAE, which jointly control the Egyptian Co. for Mobile Service Mobin, announced that they have agreed to end a long legal dispute over their ownership of the operator, Bloomberg reported.
France Telecom owns about 71 percent of Mobinil Telecom, which controls Egyptian Co. for Mobile Services with a 51 percent stake. Orascom owns 29 percent in Mobinil Telecom and 20 percent in Egyptian Co.
France Telecom was told by regulators it had to bid for the outstanding shares of Egyptian Co. to implement an arbitration ruling to buy Orascom’s stake in Mobinil Telecom.
France Telecom will change its accounting method to fully consolidate Mobinil under the agreement, which will also avail Orascom operational rights commensurate with its co-owner and strategic partner position, in addition to minority protection and liquidity rights, according to a statement.
France Telecom and Orascom, whose Egyptian partnership goes back to 1998, had been locked in an ownership dispute since December 2007.
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