Mobinil (Egypt): favourable outcome for France Telecom of the litigation instigated by Orascom Telecom
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Paris, April 05, 2009
In 2007 Orascom Telecom initiated an arbitration against France Telecom at the
Arbitration Court of the International Chamber of Commerce (ICC). Both entities
are shareholders of Mobinil. Orascom Telecom sought an award ordering France Telecom
to transfer its Mobinil shares to Orascom Telecom.
The Arbitration Court issued an award rejecting Orascom Telecom’s claims and condemning it to transfer its entire stake in Mobinil to France Telecom by April 10, 2009 at a price of EGP 441,658 per Mobinil share.
France Telecom currently holds 71.25% of the capital of Mobinil, a holding company owning 51% of ECMS, which is the mobile operator that renders its services under the Mobinil brand.
The 20% equity interest that Orascom Telecom holds directly in ECMS, as well as the free float of ECMS, do not fall within the scope of the ICC award.
Further to the acquisition of the Orascom Telecom stake in Mobinil for approximately €530 million, France Telecom will have full control over the leading mobile operator in Egypt. France Telecom will therefore be able to consolidate the entire financial results of ECMS. On the basis of the 2008 results, this represents additional annual revenues of over €360 million and EBITDA of €165 million. Such global consolidation should also have a positive impact on the generation of organic cash flow.
On 31 December 2008, Mobinil had 20.1 million clients (+33% within 1 year) and booked an increase of revenues of 21% (to E£10 billion) and of Ebitda of 27% (to E£4.68 millions) compared to the 2007 annual results.
To carry out the transfer of shares within Mobinil, France Telecom is working in close collaboration with the stock market authorities in Egypt.
The Arbitration Court issued an award rejecting Orascom Telecom’s claims and condemning it to transfer its entire stake in Mobinil to France Telecom by April 10, 2009 at a price of EGP 441,658 per Mobinil share.
France Telecom currently holds 71.25% of the capital of Mobinil, a holding company owning 51% of ECMS, which is the mobile operator that renders its services under the Mobinil brand.
The 20% equity interest that Orascom Telecom holds directly in ECMS, as well as the free float of ECMS, do not fall within the scope of the ICC award.
Further to the acquisition of the Orascom Telecom stake in Mobinil for approximately €530 million, France Telecom will have full control over the leading mobile operator in Egypt. France Telecom will therefore be able to consolidate the entire financial results of ECMS. On the basis of the 2008 results, this represents additional annual revenues of over €360 million and EBITDA of €165 million. Such global consolidation should also have a positive impact on the generation of organic cash flow.
On 31 December 2008, Mobinil had 20.1 million clients (+33% within 1 year) and booked an increase of revenues of 21% (to E£10 billion) and of Ebitda of 27% (to E£4.68 millions) compared to the 2007 annual results.
To carry out the transfer of shares within Mobinil, France Telecom is working in close collaboration with the stock market authorities in Egypt.
press contacts
Béatrice Mandine, 01 44 44 93 93, beatrice.mandine@orange-ftgroup.com
Bertrand Deronchaine, 01 44 44 93 93, bertrand.deronchaine@orange-ftgroup.com
Bertrand Deronchaine, 01 44 44 93 93, bertrand.deronchaine@orange-ftgroup.com
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