A merger that appeared headed for the dumpster was approved on Thursday in the Netherlands by VimpelCom shareholders. The move means Egypt’s Orascom Telecom is set to merge with the Russian carrier’s eastern European operations, adding to the vast network established by Egyptian billionaire Naguib Sawiris.
In Cairo, analysts said the move is likely to create more liquidity for Sawiris and Orascom as they battle the rising power of the country’s third mobile operator Etisalat, who announced this week it was looking to invest billions in increasing its footprint in Egypt and the region.
“For Sawiris, that was definitely a sign of a battle coming between his company and Etisalat, so to get the approval for the merger is going to help Orascom in Egypt and abroad to continue to grow,” said Hossam Mekki, a telecom and securities analyst with CT Securities in Cairo.
The merger of the two telecom titans was being watched with interest by Wind Mobile, a Canadian company financed by Orascom.
According to reports, the deal with VimpelCom and Orascom could mean financial security and an increase in operational strength for the startup telecom company.
By Staff
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