France Telecom will increase its ownership of leading Egyptian telecommunications giant Mobinil, both companies announced earlier on Monday.
The deal comes after several weeks of discussion with Orascom surrounding the Egyptian telecommunications company’s future. France Telecom agreed to invest €1.5 billion, while Orascom retains 5% as well as their voting rights, according to a source familiar with the deal.
The deal follows France Telecom’s investment in emerging markets due to the European market’s slowdown in mobile services.
France Telecom already owns 71.25% of Mobinil since their first investment in 2001.