French telecoms giant Orange Group has reportedly revealed that its Egyptian subsidiary MobiNil could offer a stake of between 10% and 15% on the Egyptian Exchange (EGX) in 2016. According to the Cairo Post, the plans were unveiled by Orange Group CEO Stephane Richard who was speaking at a news conference in Cairo. Meanwhile, the executive is also said to have revealed that his company could consider selling a stake in the Egyptian cellco to a local partner.
As previously reported by CommsUpdate, in February 2015 Orange Group struck a deal with Orascom Telecom Media and Technology (OTMT) under which it agreed to acquire all of the latter’s directly or indirectly held shares and voting rights in MobiNil. In a press release confirming the development, Orange Group disclosed that the transaction would be completed through the exercise of its call option under the shareholders agreement signed by the two parties in April 2012. With the overall transaction resulting in the transfer of all OTMT’s interests in MobiNil for a total consideration of EUR209.6 million (USD238 million), Orange Group noted that this included OTMT’s 5% direct stake in MobiNil at EGP280.7 per share, and 28.75% of the voting rights of MT Telecom (MTT), the holding company of the Egyptian operator that is fully owned by Orange, for a consideration of EUR45.8 million. On the back of the deal Orange Group increased its stake in MobiNil 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.’