France Telecom announced a preliminary agreement with Orascom Telecom Media and Technology to increase its stake in Egyptian mobile operator Mobinil. The non-binding memorandum of understanding signed by the two shareholders in Mobinil would see OTMT sell most of its stake to FT, at a price of EGP 202.5 per ECMS share. FT would then launch a tender offer for ECMS' free float at the same price. OTMT would retain a 5 percent economic interest in ECMS, including similar voting rights and board representation as in the current situation at Mobinil. Under the current shareholder structure, France Telecom owns 71.25 percent and OTMT 28.75 percent in the holding company Mobinil. The latter owns 51 percent in ECMS, in which OTMT also has 20 percent stake and 29 percent is free float. The deal remains subject to final board approval and regulatory clearance.
