Orascom's Syrian Assets Seized

The Egyptian Orascom Telecom has had a busy few days, having sold one of its network holdings and having its holding in another seized by the courts.

Orascom Telecom has sold a 52.5% stake in Cote D'Ivory based GSM network, Telecel Loteny to Access Telecom Mauritius for US$40 million. The payments are to be made in two separate installments over the next twelve months, and will reduce Orascom's booked debt by US$114 million at the end of the year. The transaction will be subject to clearance by the telecoms regulator.

In a separate move, a Syrian court has ordered a freeze on Orascom Telecom's local assets over a dispute over a US$49 million payment due to Syriatel in which Orascom holds 25%. Orascom Telecom has previously brought an appeal against a summary judgment issued from the Drayah Civil Court dated April 6, 2002, appointing two official receivers to manage Syriatel.

Orascom Telecom says that it still needs to clarify that the reason for this litigation is the existence of disputes as the result of the persistent attempts by the local Syrian partner to assume management control of Syriatel instead of Orascom Telecom in violation to the signed agreements between the two parties and the Syrian Telecommunications Authority.'"

Posted to the site on 3rd June 2002