CAIRO Oct 16 France Telecom will pay
Egyptian partner Orascom Telecom Media and Technology (OTMT)
110 million euros ($142.30 million) for taking over a
management services contract for their mobile phone venture
Egypt is a key part of France Telecom's efforts to expand in
high-growth emerging markets such as Africa and the Middle East.
It bought most of OTMT's stake in Mobinil this year for 19
billion Egyptian pounds ($3.11 billion), lifting its majority
stake to 94 percent.
OTMT's announcement of the France Telecom payment surprised
some analysts, who had expected the Egyptian company simply to
lose the service contract fees because of its reduced ownership
EFG Hermes investment bank said in a research note that it
has increased its valuation of OTMT by 26 percent to 0.80
Egyptian pounds per share as a result of the France Telecom
Egyptian shares of OTMT were up 9.4 percent at 0.58 pounds
by 1220 GMT.
OTMT has been left with about 5 percent of Mobinil, which
vies with a Vodafone joint venture for dominance of
Egypt's mobile market.
One trader said that the shares were driven higher by retail
investors speculating that OTMT could soon sell its remaining
Mobinil shares or issue a dividend out of France Telecom's
($1 = 6.1020 Egyptian pounds)
($1 = 0.7730 euros)
(Reporting by Tom Pfeiffer; Editing by David Goodman)