Home / Fresh doubts emerge over Orascom deal

Fresh doubts emerge over Orascom deal

Shares in Egyptian mobile firm fall after report that Mobinil stake sale to France Telecom may not go through.

Shares in Egyptian mobile firm Orascom Telecom dipped on Sunday after a report that a deal to sell its stake in Mobinil to France Telecom might not go through, helping lead the rest of the market down.

The daily Al-Masry Al-Youm, citing sources close to France Telecom, reported that the French firm was ready to work with Orascom, which had been ordered by an arbitration court to sell its stake in Mobinil.

OT had no comment on the report but its shares slipped 2.3 percent to close at 31.30 Egyptian pounds ($5.56). The benchmark EGX 30 index ended down 24.51 points, or 0.5 percent, at 5,166.83 points.

"If the deal doesn't go through then obviously Orascom would not be getting that money," said Yasser Hassanein, managing director of Dynamic Securities, citing the newspaper report as helping drive down the share price.

Another trader said uncertainty about the outcome of the deal was weighing on shares in both Orascom and Mobinil, which slipped 0.5 percent to close at 206.90 pounds.

Egypt's market regulator says France Telecom should tender to buy all shares in Mobinil as part of a court ruling that it purchase Orascom's stake in a holding company that owns 51 percent of Mobinil.

Orascom said in April that France Telecom had not met the deadline but has said it would prefer to retain its Mobinil stake. (Reuters)

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.