Tamer El Mahdy, the CEO of Algerian mobile operator Djezzy, is on medical leave, a Vimpelcom spokesperson has confirmed.
Djezzy is controlled by Orascom Telecom Holding, which in turn is owned by Russia’s Vimpelcom.
The Algerian government and…
Tamer El Mahdy, the CEO of Algerian mobile operator Djezzy, is on medical leave, a Vimpelcom spokesperson has confirmed.
Djezzy is controlled by Orascom Telecom Holding, which in turn is owned by Russia’s Vimpelcom.
The Algerian government and Vimpelcom have long been involved in a dispute over the ownership of Djezzy.
Vimpelcom acquired a majority stake in OTH and subsidiary Djezzy in April 2011, as part if its merger with Wind Telecom.
However, before the takeover was completed, Algeria had announced plans to nationalise Djezzy following a dispute over taxes and fines with OTH.
Vimpelcom’s announcement early this year that it would sell a majority stake in Djezzy to Algeria signalled the dispute could finally be coming to an end.
But a few weeks ago, the Algerian Court of first instance decided to fine Djezzy AD99bn (US$1.3bn) and criminally convict a senior member of its executive team over alleged breaches of foreign exchange regulations. The name of the executive was not disclosed but local reports suggest that it is Mahdy.
Shortly after the fine and the conviction, OTH submitted a notice of arbitration against the Algerian government with regard to Djezzy. As a result, sale talks have reportedly been put on hold.
