EFSA approves Orange’s stake increase

The Egyptian Financial Supervisory Authority (EFSA) approved a tender offer in which European telecoms giant France Telecom-Orange seeks to increase its stake in local cellco Egyptian Company for Mobile Services (ECMS), which trades as MobiNil, TeleGeography CommsUpdate reported.

The EFSA said shares in MobiNil and Orascom Telecom Holdings (OTH) will resume trading on the Egyptian bourse after a two-day suspension.

As previously reported by CommsUpdate, FT-Orange announced plans to spend up to EUR1.5 billion to increase its stake in MobiNil to 95 percent. The move is the result of an agreement between the Paris-based group and OTH over the Cairo-listed mobile network operator, with FT-Orange having agreed terms to acquire all but 5 percent of MobiNil from Orascom at a price of EGP202.50 per share.

OTH currently holds a 20 percent direct stake in MobiNil, as well as an indirect 28.75 percent stake held through a joint venture with FT-Orange; the JV, MobiNil Telecom, has a 51 percent majority stake in MobiNil.

FT-Orange confirmed it plans to launch a mandatory tender offer via its subsidiary MT Telecoms SCRL, in which it will offer to acquire ECMS shares at EGP202.50 per share. The offer opens today and will continue through May 23.