Orange Group to acquire OTMT’s interests in MobiNil

24 Feb 2015

French telecoms giant Orange Group has announced that it has struck a deal with Orascom Telecom Media and Technology (OTMT) under which it will acquire all of the latter’s directly or indirectly held shares and voting rights in the Egyptian Company for Mobile Services (ECMS), which offers services under the MobiNil banner. In a press release confirming the development, Orange Group disclosed that the transaction will be completed through the exercise of its call option under the shareholders agreement signed by the two parties in April 2012. The transfer of OTMT’s direct stake in ECMS will be completed as an ‘over the counter’ transaction between the two main shareholders, with the deal expected to be finalised by the end of March 2015. With the overall transaction resulting in the transfer of all OTMT’s interests in ECMS for a total consideration of EUR209.6 million (USD238 million), Orange Group noted that this includes OTMT’s 5% direct stake in ECMS at EGP280.7 (USD36.68) per share, and 28.75% of the voting rights of MT Telecom (MTT), the holding company of ECMS that is fully owned by Orange, for a consideration of EUR45.8 million. On the back of the deal Orange Group will increase its stake in ECMS from around 94% to around 99% of the capital, with the company noting: ‘Through this investment, Orange confirms its commitment to the Egyptian market as one of its most important assets in the region and its largest market in terms of customers.’

Egypt, Orange Egypt, Orange Group, Orascom Investment Holding (formerly OTMT)