The Egyptian Financial Supervisory Authority (EFSA) approved France Telecom''s tender offer for acquiring 100 per cent of the issued capital of the Egyptian Company for Mobile Services (Mobinil) shares at LE202.5 per share, Al Ahram's Arabic news portal reported on Sunday, according to media reports.
Trading on Mobinil will resume on Monday, after it was halted for two consecutive sessions on Thursday and Sunday.
France Telecom Orange last week had finalized deal with Orascom Telecom Media and Technology (OTMT) for the purchase of most of OTMT’s holding in Egyptian operator ECMS (MobiNil).
France's biggest phone company will pay 202.5 Egyptian pounds ($33.53) per share for the up to 60% of ECMS outstanding. The offer is part of a complex agreement hammered out with France Telecom partner Orascom Media and Technology Holding SAE, an Egyptian phone company that owns 29.7% of ECMS directly and indirectly.
"To further enhance ECMS's integration in the Egyptian economy, France Telecom Orange intends to ensure that, if the conditions allow it, up to 15% of ECMS's shares are held by Egyptian shareholders, whether these are private or public companies, or individual shareholders," France Telecom CEO Stéphane Richard had said in a statement.
The acquisition underscores a push among European telecoms to move into faster growing foreign markets to make up for stagnant sales at home. Last year, Spain's Telefónica SA paid €7.5 billion to buy Portugal Telecom SGPS SA out of their Brasilcel NV venture and gain control of Brazil's biggest cellular company. Portugal Telecom then turned around and spent about $5 billion to buy just over 25% of rival Brazilian cell provider Telemar Norte Leste SA, known as Oi.