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France-Telecom to buy out Orascom stake in mobile venture

PARIS, Feb 13 (KUNA) -- France's leading telecommunications operator, France-Telecom-Orange, announced here Monday that it was seeking to buy out the bulk of shares held by Egypt's telecom company, Orascom, and another partner held in the mobile phone ventures they jointly own, the FranceTelecom-Orange said in a statement.
The French company is to purchase Orascom's 200-percent share in MobiNil and ECM and will pay Egyptian Pounds 202.5 for each share. Orascom will keep a five-percent stake in the jointly-owned companies. The deal also involves an agreement with Technology Holding S.A.E. and the three companies await regulators' approval for the share deal.
They initially set up their operations together in 2010.
France-Telecom is to later acquire any outstanding shares from MobiNil and ECM still on the market if the deal with Orascom gets final approval with the companies' boards.
The three main shareholders in the mobile venture set up their joint holding in 2010, with France-Telecom holding the majority stake of 71.25 percent.
The announcement of the share purchase was made jointly in Paris and Cairo. (end) jk.hb KUNA 131502 Feb 12NNNN