Sawiris says Orascom Telecom to set up new firm

Orascom Telecom Holding will set up a new company to manage its assets in Egypt, North Korea and Greece, which were not included in the merger between its parent company Weather Investments and Russia's VimpelCom, Orascom Executive Chairman Naguib Sawiris said in a special interview with Al Arabiya.

He noted that the company's operations in Algeria are included in the deal.

The new company will be established within the next few weeks and will be listed on Egypt's stock exchange, Sawiris said.

The Egyptian business magnate said that Orascom Telecom shareholders will be awarded shares in the new company equivalent to their current holdings.

Sawiris will own 51% of the new company, which is equivalent to his old share in Orascom Telecom.

According to the deal, Weather shareholders will get 20% of new Vimpelcom shares valued at $4.7 billion and $1.9 billion in cash.

The deal would create the world's fifth-largest mobile- phone company and give Vimpelcom access to the markets in Africa and the Middle East.