The International Arbitration Tribunal today notified its decision regarding the dispute between Orascom and Wataniya Telecoms over the ownership of the shares of Tunisiana, the second mobile telephone operator in Tunisia.
 
No share transfers will be made as a result of the award and Wataniya was not ordered to pay any damages. The award concludes that although Wataniya did not respect the right to propose the appointment of Tunisiana's board chairman, this breach itself was not sufficient to require Wataniya to transfer its 50% shareholding to Orascom, as Orascom had demanded.
 
A company spokesperson said that the arbitration decision was binding.
 
H.E. Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, Chairman of both Qtel and Wataniya Telecom, said, “When Qtel purchased Wataniya from KIPCO in March 2007, it inherited an ongoing arbitration regarding the shareholders agreement between Orascom and Wataniya in Tunisiana, our 50/50 mobile joint venture in Tunisia. We are delighted that the arbitrators have issued a binding opinion that puts this issue behind us and allows Wataniya Telecom to work constructively with Orascom to strengthen Tunisiana's position as Tunisia's mobile operator of choice.” Sheikh Abdullah went on to say: "Tunisiana's business has been largely untouched by the arbitration issue. Indeed, over the last year the company grew from 3.1 million to 3.5 million subscribers and improved its market share from 43.8% to 45.9%".
 
Tunisiana mobile was launched in 2002 and is owned 50/50 by Orascom and Wataniya. Wataniya is in turn a 51% subsidiary of the Qtel Group. Tunisia is a vibrant market with a population of 10.2m and mobile penetration of 73%.
 
In the year to December 31, 2006 Tunisiana generated revenues of $461m, EBITDA of $228m and declared a dividend of $62m for the year. For the 9 months to September 30, 2007 Tunisiana generated revenues of $416m.