Orascom, France Telecom Disclose Details

It was seen that on Sunday, Orascom Telecom and France Telecom revealed the details of their Mobinil ownership pact which was followed by a request for clarity from Egypt's market supervisor.

On April 14, it was also noticed that the two firms declared a broad deal to end the quarrel over Mobinil that had gonedrag through international arbitration and Egyptian courts.

It was seen that the French firm under the deal decided to pay Orascom a settlement fee of $300 million.

On Sunday, from the joint statement it was seen that the fee takes into account would add to the portion of Mobinil's earnings before interest, taxation, reduction and amortization. This was recorded on the France Telecom books.

It was noted that France Telecom held 71.25% of the company’s holdings that had 51% of the Egyptian Company for Mobile Services and was known as Mobinil.

It was notified by the firms that the price of a put option that was available to Orascom was calculated through a weighted average market price. It did not comprise firm's long-term valuation of Mobinil.

Last Monday, more details were asked by the Egyptian Financial Supervisory Authority on how settlement fee were calculated by the firms. He also asked about how the deal would affect management structure and earnings accounting.