Wednesday, Nov 02, 2011

(This story was originally published Tuesday)

DUBAI (Zawya Dow Jones)--Orascom Telecom Holding, or OT, said that if the planned split of the company into two separate entities doesn't take place before the end of the year then France Telecom could potentially exercise a call option on Egyptian mobile operator Mobinil.

"If the internal restructuring [OT stock spin-off] does not happen and if there's an event of a change of control [the ownership of Mobinil], then France Telecom has the right to exercise its call option," Orascom Telecom told Zawya Dow Jones in an email Monday. "The France Telecom call option price is determined with reference to the fair market value of the ECMS [Egyptian Co. for Mobile Services] shares, plus a 5% premium," it added.

France Telecom declined to comment.

OT's demerger condition is part of its agreement with mobile telephone operator VimpelCom Ltd. (VIP). Shareholders in the Russian firm in March voted in support of a $6 billion deal to acquire the telecom assets of Egyptian billionaire Naguib Sawiris.

If the OT split does not take place by the end of 2011, according to the contingency plan, VimpelCom will have the right to buy all of Orascom Telecom's assets, including Mobinil, and this will give France Telecom the right to exercise its call option over OT's shares in Mobinil.

France Telecom owns 36.4% of ECMS, the Cairo-listed company commonly referred to as Mobinil, while Orascom Telecom, or OT, controls 34.6% of the company. Naguib Sawiris owns 51.7% of OT through his Wind Telecom vehicle.

Orascom Telecom is waiting for the Egyptian Financial Supervisory Authority to approve its stock demerger into two separate companies: Orascom Telecom and Orascom Telecom Media and Technology. The telco last week said it expected the EFSA to approve the demerger this week. OT's shares would then be suspended on Nov.2, with the two separate companies, OT and OTMT, expected to commence trading on Nov. 21, OT said.

OT shares closed trading Monday 1.8% higher at EGP3.33.

-By Shereen El Gazzar, Dow Jones Newswires, +9714 446 1684 Shereen.elgazzar@dowjones.com

Copyright (c) 2011 Dow Jones & Co.

(END) Dow Jones Newswires

02-11-11 0355GMT