Orascom set to challenge MobiNil sale decision in court

5 Jan 2010

Following the recent announcement that an Egyptian appeals committee had rejected a call by Orascom Telecom to halt the sale of shares in mobile network operator MobiNil to France Telecom (FT), Orascom has announced it will launch a legal challenge to block the sale. According to Reuters, Orascom has said it will ‘file a case before the Administrative Court (Investment Division) to challenge the decision and request its annulment and seek an injunctive relief to stay the decision’. It is understood that the Egyptian group plans to file the case prior to 14 January, although it has also said that it aims to ‘continue amicable negotiations with FT’.

As reported by CommsUpdate yesterday the appeals committee responsible for examining the matter opted not to block the sale of all outstanding shares that FT does not hold in MobiNil at a price of EGP245 (USD44.63) per share; Egyptian Financial Supervisory Authority (EFSA) approved FT’s offer in early December, after its forerunner, the Capital Market Authority, had rejected three previous offers.