In a press release, Orascom Telecom Media and Technology Holding S.A.E. – OTMT – (OTMT.CA) has announced Monday receiving a notice pursuant to which France Telecom exercised its right to require OTMT to assign to FT the general services agreement (GSA) governing the provision of services by OTMT to the Egyptian Company for Mobile Services S.A.E (ECMS) – Mobinil (EMOB.CA), along with certain related deferred receivables, in compliance with the Master Agreement between FT and OTMT as amended and restated on April 11, 2012 and in accordance with the joint announcements made by the same parties or their predecessors in interest on May 9, 2010, and on April 12, 2012.
OTMT and FT also expect to enter into a transition services agreement with ECMS pursuant to which OTMT and FT will assist ECMS in the review of other related party agreements ECMS has with OTMT, FT and certain related companies in order to consider potential ways to further improve ECMS’s cost structure; such transition services agreement would not impose additional financial obligations on ECMS.
In connection with the assignment to FT of the GSA and the related deferred receivables and undertakings, as well as the entering of the transition services agreement in favour of ECMS. FT will pay OTMT a transfer fee of EUR 110,000,000, to be marginally increased pursuant to the terms of the Master Agreement. Following the assignment of the GSA, OTMT expects to continue to offer management support services to ECMS as an integral local partner and as a key advisor with respect to ECMS’ future operations in Egypt.
The procedures for the execution of the transition services and advisory services agreements are being undertaken in conjunction with ECMS, which procedures OTMT expects to be completed during the months of October and November 2012.
