CAIRO, Feb 23 (Reuters) - Egypt's Orascom Telecom
Media Technology (OTMT) said on Wednesday it hoped to
wrap up negotiations within a few weeks with France Telecom
over the sale of most of its stake in Egyptian mobile
operator Mobinil.
Under the terms of a preliminary accord signed last week,
France Telecom would buy the OTMT's stake for 202.5 Egyptian
pounds per share, netting the Egyptian company about 6 billion
Egyptian pounds ($994 million).
OTMT would retain a 5 percent stake in Mobinil, continue to
provide management oversight and retain three seats on its
13-director board under the accord, it said.
The Egyptian company said on Wednesday it was now
negotiating a put option mechanism for its remaining 5 percent
stake, which would be exercisable between 2015 and 2017, to
replace to existing mechanisms.
"OTMT is optimistic that the negotiations will be completed
and the transactions be launched in the coming few weeks," OTMT
said in an emailed statement.
The company has said it will give shareholders much of the
$1 billion it stands to gain by selling its Mobinil stake, but
keep part of it for new business opportunities.
OTMT was formed from assets still controlled by Egyptian
businessman Naguib Sawiris after he sold his stake in Orascom
Telecom last year.
The company has investments in Egypt, North Korea, Pakistan,
Lebanon and other North African and Middle Eastern countries, in
mobile companies, media and technology and cable businesses.
OTMT's share was up 3.7 percent at 0955 GMT, Mobinil was 2.7
percent higher and the benchmark index was up 1.6
percent.
($1 = 6.0362 Egyptian pounds)
(Reporting by Patrick Werr)
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