The break-up of Orascom Telecom (OT) has been completed, according to the Egyptian Exchange (EGX). The split company will be listed on 3 January. Orascom Telecom has been divided into two companies, Orascom Telecom Holding (OTH) and Orascom Telecom Media & Technology Holding (OTMTH).
The shares will be available for trading after the disclosure report has been published. The opening price will be determined by the EGX Trading Committee.
Before the split, OT’s last closing price before trading was suspended on 24 November was £E2.98 ($0.49). The opening price for the two new entities is expected to be linked to the par value split 58 per cent over OTH (£E1.75 per share) and 42 per cent for OTMT (£E1.25 per share).
The Listing Committee approved to list the shares resulting from the restructuring process in a meeting held on 29 December 2011.
The separation is a result of a takeover by Russian firm Vimpelcom, which took place in April 2011. The Russian operator acquired a 51.7 per cent stake in Orascom Telecom, taking control of its operations in Pakistan, Bangladesh and Canada.
OTMT now has shareholding interest in Egypt’s mobile operator Mobinil, part-owned by France Telecom. It also has a 20 per cent stake in the Egyptian Company for Mobile Services, complete ownership of the Middle East and North Africa for Sea Cables and Med Cable Limited, a UK-based company, and a 99 per cent shareholding interest in Orascom Telecom Ventures.
The split had initially been intended to take place before the end of the year, but the political upheaval and general uncertainty in Egypt delayed the process.