The ongoing dispute around Algerian mobile operator Djezzy could take a new turn after minority shareholder Cevital said it might use its pre-emption right in the company.
Since 2011, Russia-focused VimpelCom, which controls about 50% of Djezzy, and the…
The ongoing dispute around Algerian mobile operator Djezzy could take a new turn after minority shareholder Cevital said it might use its pre-emption right in the company.
Since 2011, Russia-focused VimpelCom, which controls about 50% of Djezzy, and the Algerian state have held talks regarding the shareholding structure of the company.
Two years ago, Vimpelcom acquired a majority stake in Orascom Telecom Holdings (OTH), which in turn controls almost 97% of Djezzy. The rest is held by Algerian conglomerate Cevital.
However, before the takeover was completed, Algeria had announced plans to nationalise the Algerian operator following a dispute over taxes and fines with OTH.
The Russian company announced in 2012 that it would sell its stake to Algeria, subject to an agreement on price. But negotiations have since hit a stumbling block, according to reports.
In an interview with local radio Maghreb M yesterday (19 June), Cevital CEO Issad Rebrab said that in case the decision on Djezzy’s shareholding is not favourable to his company, it might exercise its pre-emption right.
He was quoted telling that a solution could see VimpelCom keeping a 30% stake in Djezzy, Algeria acquiring a 35% interest and Cevital increasing its holding to 34%.
Cevital was not immediately available for comment.
