[Egypt] Telecom and Orange sign final settlement agreement ending legal disputes
Telecom Egypt and Orange Egypt announce that they have reached a final settlement agreement of the ongoing disputes between both companies through a settlement agreement.
As per this settlement agreement, Telecom Egypt and Orange Egypt will settle all the pending disputes related to interconnection, infrastructure and international gateway services mainly the arbitration case no. 644 for the year 2009 before the Cairo Regional Centre for International Commercial Arbitration, and Court case no. 341 for the 8th Judicial Year before the Economic Court of Cairo; and any direct or indirect related legal proceedings.
The agreement marks the complete settlement of all pending disputed amounts between Telecom Egypt and Orange Egypt covering the period from 2008 to October 2017 relating to interconnection, leased lines and international services.
Within the framework, both companies have also agreed to undertake the necessary legal steps to waive the above mentioned disputes.
In terms of financial impact for Telecom Egypt, based on the agreement Telecom Egypt will book in Q4 2017 on its P&L additional revenue of EGP 49m and impairment to receivables of EGP 225m.
The latter however is a non-cash charge and the settlement agreement in fact will lead to a net positive cash flow to Telecom Egypt of EGP 74m.
Ahmed El Beheiry, Group Chief Executive, commented: “We are pleased with the resolution of our dispute and the settlement achieved, which was enabled by the mutual cooperation between Telecom Egypt and Orange. This marks the complete resolution of the longstanding legal disputes with Orange. The settlement agreement strengthens our collaboration and paves the way to the framework we will agree on in the future. We look forward to expanding our business relationship with Orange.”