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Cairo, Egypt, 2010/01/14 - A determination of the substantive issues will be made after a judicial committee has presented recommendations on the case to the court, which will examine such recommendations on February 13th. LSE: ORTEq.L, OTLD LI
Orascom Telecom Holding S.A.E. (“OTH” or the “Company”) announces that the Administrative Court (Investment Division) has granted OTH an injunction to stay the decision of the Egyptian Financial Supervisory Authority (“EFSA”) to accept the publication of the mandatory purchase offer submitted by Orange Participation, an affiliate of France Telecom (“FT”), for the acquisition of 100% of the shares of the Egyptian Company for Mobile Services (“ECMS”) at a price of 245 LE per share, which was issued on December 10th, 2009 (“Decision”). The purchase offer was planned to expire on January 14th, 2010 but has been declared null and void by the court.
A determination of the substantive issues will be made after a judicial committee has presented recommendations on the case to the court, which will examine such recommendations on February 13th, 2010.
The court’s ruling confirms OTH's position; that there is no valid justification for a price differential between the price offered in the FT mandatory tender offer and the price of the sale stipulated in the arbitration award, pursuant to which FT should have presented a mandatory tender offer by latest 15 April 2009 (within the 30 days period which have now elapsed) at a price of 273 LE per ECMS share pursuant to Egyptian Capital market law.
Naguib Sawiris, Executive Chairman of OTH expressed that he was delighted with this ruling and added “we are open to continue our amicable negotiations with France Telecom, with the aim to solve the ongoing dispute between the two companies and pursue our partnership with France Telecom in Mobinil as an operating company and continue to push Mobinil forward to maintain its leadership position in the Egyptian market.”
About Orascom Telecom
Orascom Telecom (orascomtelecom.com) is a leading international telecommunications company operating GSM networks in high growth markets in the Middle East, Africa and Asia, having a total population under license of approximately 510 million with an average mobile telephony penetration of approximately 47% as of September 30th, 2009. Orascom Telecom operates GSM networks in Algeria ("OTA"), Pakistan ("Mobilink"), Egypt ("Mobinil"), Tunisia ("Tunisiana"), Bangladesh ("banglalink"), North Korea (“koryolink”), and Canada (“WIND Mobile”) through its indirect equity shareholding in Globalive Wireless. In addition, OTH has an indirect equity ownership in Telecom Zimbabwe (Zimbabwe) and through its subsidiary Telecel Globe, OTH also operates in Burundi, the Central African Republic and Namibia. Orascom Telecom had almost 89 million subscribers as of September 30th, 2009.
Orascom Telecom is traded on the Cairo & Alexandria Stock Exchange under the symbol (ORTE.CA, ORAT EY), and on the London Stock Exchange.