France Telecom acquires stake in Egyptian mobile operator

According to an article on www.wsj.com, France Telecom (FTE) plans to acquire a 28.75% stake in Egyptian mobile phone operator Mobinil. The value of the transaction is estimated to be around EUR530 million.

According to the article, the transaction will take place as a result of a court ruling compelling Orascom Telecom Holding’s to transfer its holding in Mobinil to the French telecom giant.

This holding in Mobinil offers France Telecom the ability to increase its footprint in Africa. Mobinil has a customer base of 20 million subscribers in the North African region.

France Telecom indicated that it is currently working with authorities in the Egyptian stock market to facilitate the transfer of shares.