Orascom Denies Reports of Plans to Sell Mobinil Stake

Egypt's Orascom Telecom has refuted recent media comments that it is considering selling some of its holding in local mobile phone operator, Egyptian Company for Mobile Services - which trades as Mobinil.

"I can assure you that our stake in Mobinil is not for sale," Orascom Telecom investor relations director Hatem el-Gammal told the South African ITWeb. He  declined to comment on whether Orascom Telecom is in talks with MTN over a possible consolidation.

Mobinil is controlled by France Telecom and Orascom Telecom, with 29% floated on the Cairo stock exchange.

There have been strained relations between Orascom and France Telecom, with the latter initiating legal action against FT last December due to disagreement over the strategy of MobiNil. Both companies have agreed to settle their disputes in the International Court of Arbitration.

According to the Mobile World, Mobinil ended last September with just over 13.7 million subscribers - and a market share of nearly 51%.

On the web: ITWeb - Mobile World - cellular-news

Posted to the site on 17th January 2008