France Telecom has agreed to buy the majority of the personal stake owned by Egyptian billionaire  Naguib Sawiris in Mobinil. Sawiris is executive chairman of Orascom Telecom, which maintains a stake in the mobile operator.

Stephane Richard, CEO of France Telecom and Sawiris, have signed finalised terms of their new agreements regarding the ownership of the firm, settling a long-running dispute between both groups concerning Mobinil in Egypt. The move increases the French company’s control in the Egyptian mobile-phone venture.

There will be no change to the existing ownership structure or their shareholders’ voting rights and the two telecoms operators to contribute their respective know-how and added value to the successful and profitable development of Mobinil and ECMS, the country’s leading mobile operator.

“We are a long-term industrial partner of Egypt and will use our expertise to remain a best-in-class operator for our 26 million customers,” said Stephane Richard, CEO of France Telecom.

Dr Tarek Kamel, Egyptian Minister of Communications and IT, added : “I am glad to witness this agreement which ensures the stability of Mobinil and empowers its further development of its telecom services.”

As a result of the buyout, France Telecom has a 71.25 per cent stake in Mobinil, which in turn, has a 51 per cent stake in Egyptian Company for Mobile Services (ECMS) in Egypt.