Orascom completes ownership pull out from Syriatel
Orascom Telecom Holding (OTH), the leading GSM telecommunications and Internet services operator in the Middle East has completed the agreed transaction to dispose of its stake in Syriatel after settling a legal dispute with its local shareholder, Drex Technologies, reported Al-Iqtissadiya .
Egypt-based OTH founded the Syrian mobile company in 2001 in cooperation with Drex. The agreement, reached on July 16, 2003, settles a dispute over an Orascom allegation, submitted in October, that Drex was making use of its political affiliations to take over the company. The settlement has resolved all legal disputes and litigation in international and Syrian jurisdictions.
OTH will no longer hold any shares in Syriatel and will receive cash consideration to compensate for OTH’s initial investment, loans made to Syriatel and expenses incurred. OTH will continue to provide management expertise to Syriatel on a contract basis for a management fee.
In early 2001, the Syrian government awarded a 15-year build, operate and transfer (BOT) GSM license to Syriatel, a joint venture 25 percent owned by OT and 75 percent held by various Syrian investors. A second GSM network Spacetel is operated by Investcom, a Lebanese-Syrian joint venture. — (menareport.com)
© 2003 Mena Report (www.menareport.com)