Shareholders of one of Africa’s biggest mobile network operators, Orascom Telecom Holdings have witnessed major business gains over the past week, due to the company splitting into two separate entities.
The Cairo-based company saw their share price increase by 1.6%, placing each share at 3.23 Egyptian pounds. This gain, reported around 11:05 a.m. in Cairo, is their biggest gain since October 13 2011.
The shareholders’ decision to split the company has been approved and the new companies shall be the Orascom Telecom Holding S.A.E and Orascom Telecom Media and Technology Holding S.A.E. The split is meant to facilitate a merger with Russia’s VimpelCom Ltd.
According to Egypt’s spokesman, Hisham Turk, they had cancelled the first trade involving the company’s shares, citing procedural errors. Orascom Telecom Holding S.A.E currently employs over 20 000 people and runs 11 GSM branches around the globe.
Luiz Sanchez
