Orascom has decided to sell its 14.2 percent stake in Hutchison Telecommunications International (HTIL) to HTIL’s parent Hutchison Whampoa. Hutchison will pay Orascom a combined HK$7.5 billion (US$962 million) for the stake. Orascom’s move was largely expected by analysts after HTIL sold a controlling 67 percent stake in Hutchison Essar, India’s fourth largest mobile operator, to Vodafone earlier this year.
Naguib Sawiris, Orascom Chairman and CEO, said in a statement: “Orascom’s initial acquisition of HTIL shares was to gain exposure to the Indian market, however, after the sale of the Indian asset, the investment in HTIL became of less strategic value to Orascom.” In an interview with the Financial Times back in February, Sawiris said the sale was “clearly not in accordance with the spirit of our agreement [with Hutchison].”