France Telecom and Orascom Telecom have reached a new and comprehensive agreement on the shareholding of Egyptian Company for Mobile Services (ECMS) and Mobinil, brokered with the help of the Egyptian government. The shareholder structure will not change, but ISP Linkdotnet, previously wholly owned by Orascom, will be merged into ECMS. Under the outlined agreement, France Telecom and Orascom Telecom will hold 71.25 percent and 28.75 percent of Mobinil, respectively. Mobinil and Orascom Telecom will each own 51 percent and 20 percent of ECMS. The remaining 29 percent of ECMS will be in free float. The deal due to be finalised over the coming weeks is intended to end all disputes in relation to the operators' joint investment in Mobinil. As a result of the amended shareholder agreement, France Telecom will change its accounting method and will fully consolidate ECMS (rather than through proportional integration as in 2009 and before). The amended shareholder agreement will also give Orascom Telecom operational rights commensurate with its co-owner and strategic partner position, in addition to protection and liquidity rights. Going forward, Orascom Telecom will consolidate its participation in ECMS through the equity method. France Telecom CEO Stephane Richard expressed satisfaction at reaching agreement with an entrepreneur such as Naguib Sawiris. He stated that the Egyptian market was very important for France Telecom and that the group would continue to invest and contribute its know-how in the years to come, including maintaining a strong R&D and Orange Business Services presence in the country.
