VimpelCom reportedly may be close to reaching an agreement on the sale of its majority stake in Orascom Telecom Algerie (Djezzy) to the North African state.
VimpelCom announced last year that it would sell the stake to Algeria, which wants to…
VimpelCom reportedly may be close to reaching an agreement on the sale of its majority stake in Orascom Telecom Algerie (Djezzy) to the North African state.
VimpelCom announced last year that it would sell the stake to Algeria, which wants to nationalise Djezzy, subject to agreement on price.
Another major obstacle has been Algeria’s ban on foreign exchange transfers, which prohibits Djezzy, a subsidiary of Egypt-based Orascom Telecom Holding (OTH), from importing foreign equipment.
Russian newspaper Vedomosti reported the Algerian government has decided to lift the ban, meaning VimpelCom may could soon sell the 51% stake. The report cited Algerian newspaper Al-Fadjr as saying that Djezzy will subsequently be renamed Optimum Telecom Algeria.
VimpelCom acquired a majority stake in OTH and Djezzy as part of its merger with Wind Telecom. However, before the takeover was complete, Algeria announced plans to nationalise Djezzy following a dispute over taxes and fines with OTH. In March 2012, Algeria fined VimpelCom US$1.3bn for violating foreign exchange laws, after which the telco announced it would take the matter to international arbitration.
VimpelCom was not immediately available for comment.
The telco is reviewing its assets as part of plans to improve cash flow and cut debt. Last week, Canadian newspaper The Globe and Mail reported that VimpelCom has hired UBS to sell local unit, Wind Mobile.
VimpelCom has also announced that it intends to sell is entire 90% stake in Cambodian operator Sotelco and that negotiations with a potential buyer have been in progress since the start of the year.
