FT explains MobiNil ownership dispute resolution fee

10 May 2010

France Telecom (FT) and Orascom Telecom have released further details regarding the resolution of the ownership dispute of Egyptian cellco MobiNil. FT is to fully consolidate results from MobiNil after agreeing to pay Orascom USD300 million to cover the termination of a previous shareholders’ agreement and compensation for Orascom no longer being able to consolidate MobiNil’s results. As part of the changed shareholders’ agreement, Orascom received a put option to sell its shares in MobiNil and Egyptian Co. for Mobile Services (ECMS, holder of a 51% stake in MobiNil) to France Telecom, the companies said. The announcement follows a request made by the Egyptian Financial Supervisory Authority (EFSA) for FT and Orascom to explain the fee.