Orascom must settle its debt and accrued tax before it is able to sell its Algerian unit Djezzy to the Algerian state, according to reports citing local newspaper El-Khabar.
The publication quotes prime minister Ahmed Ouhahia as telling the country’s…
Orascom must settle its debt and accrued tax before it is able to sell its Algerian unit Djezzy to the Algerian state, according to reports citing local newspaper El-Khabar.
The publication quotes prime minister Ahmed Ouhahia as telling the country’s parliament that Orascom owes US$230m in debts and US$190m in fines lined to “illegal money transfers”.
Ouhahia went on to say that any such negotiations would be with Orascom rather than Russia’s Vimpelcom, which has agreed to a merger with the company controlled by Egyptian businessman Naguib Sawiris. Vimpelcom, which had initially assumed that Djezzy would form part of the deal, has indicated that it would be willing to discuss a sale to the Algerian state, but only after sealing a deal with Orascom.
The Algerian government’s insistence that it has the right of first refusal over Djezzy in the event of any M&A involving Orascom has already scuppered a potential tie-up with South Africa’s MTN. Djezzy is the most valuable asset belonging to Orascom.