www.WirelessFederation.com/news:? A global settlement fee of $300 million will be paid by France Telecom to Orascom Telecom Holding as part of an agreement between the two companies on Egyptian mobile operator Mobinil. This will put an end to a protracted dispute between the two telecom operators.
The fee will be paid after the shareholders’ agreement has been amended and restated and it comes fully into force. The current ownership structure in the agreement with Orascom is not being changed.
As per the agreement, Egyptian Co. for Mobile Services, or ECMS, which is commonly referred to as Mobinil, is 51% owned by a holding company also called Mobinil, which in turn is 71.25% controlled by France Telecom, and 28.75% by Orascom Telecom.
The partnership between the two companies will continue but France Telecom will consolidate 100% of ECMS’s results compared to 70% before.