HC: France Telecom Purchase Offer Is Profitable

HC Securities and Investments (HCSI), the independent financial adviser for the offer submitted by France Telecom’s MT Telecom SCRL to purchase 100% of the Egyptian Company for Mobile Services (Mobinil), asserting that the purchase offer is lucrative for Mobinil’s shareholders.

Following the Egyptian Company for Mobile Services assigning in accordance with the provisions of Article No. (338) of Chapter II of the Executive Regulation of Capital Market Law no. 95/1992, HCSI said it has concluded that Mobinil’s share price is evaluated at EGP 117.34 a share. The calculation is based on the Discounted Cash Flows (DCF) and Price-Earnings Ratio (P/E Ratio).

Moreover, HCSI mentioned that the offered price is 110.6% higher than the EGX’s average closing price during the 6 months before  the negotiations between France Telecom and Mobinil started. The price is also 72.6% higher than the targeted price set by the independent financial adviser.

In the meanwhile, Mobinil Board of Directors see that the offered price is lucrative for the company’s shareholders.

The last day for France Telecom’s mandatory tender offer to acquire 100% of Mobinil shares at EGP 202.5 per share will be on Wednesday 23/05/2012, the close of share trading.