Orascom Settles Syrian Dispute

Egypt's Orascom Telecom has settled its legal dispute with DREX Technologies, Orascom's partner in Syriatel. The agreement reached on July 16th 2003 settles all legal disputes and litigation in International and Syrian jurisdictions. As part of the settlement, Orascom will no longer hold any shares in Syriatel and will receive cash consideration to compensate for Orascom's initial investment, loans made to Syriatel and expenses incurred.

Orascom will continue to provide management expertise to Syriatel on a contract basis for a management fee.

Orascom will complete the agreed transaction to dispose of its stake in Syriatel. Orascom has cancelled the agreement it had signed with Cylotel in May 2002 to transfer its shares in Syriatel to Cylotel.

Earlier this year, a Syrian court ordered a freeze on Orascom Telecom's local assets over a dispute over a US$49 million payment due to Syriatel. 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."

Posted to the site on 18th July 2003