Shareholders in Orascom Telecom Media and Technology (OTMT) have approved plans to sell most of the firm’s stake in Egyptian mobile operator ECMS to France Telecom in a EGP6 billion (US$1 billion) deal, reports Zawya Dow Jones.

"The shareholders also approved the delegation of authority to each of the executive chairman and managing director of the company [OTMT] to finalise negotiations and execute binding agreements in connection therewith," said OTMT in an e-mailed statement late last week.

Last month OTMT and France Telecom signed a non-binding deal proposing that the French firm would acquire “most” of OTMT’s holding in ECMS’s majority holding company at EGP202.50 a share – before launching a tender offer at the same price for the stock which is currently in free float.

In a statement at the time, France Telecom said that OTMT would retain “similar voting rights and board representation” as currently in place, and would remain its “strategic local partner” in the country, providing strategic and management oversight over ECMS.

Depending on shareholder uptake of the offer, France Telecom could end up owning up to 95 percent of the Egyptian operator – with OTMT retaining a 5 percent economic interest and 30 percent voting rights. 

According to Wireless Intelligence data, ECMS – which trades under the name MobiNil – is currently the second largest operator in Egypt, with a 39 percent market share, behind Vodafone Egypt on 44 percent.

France Telecom was previously involved in an ownership dispute with Orascom over the Egyptian assets, which was settled in April 2010. It is believed that at this time the provision was put in place for Orascom to sell its holding to the French incumbent.

OTMT is the firm that was spun off from Orascom Telecom Holding (OTH), following the latter’s merger with VimpelCom.