The merged Vimpelcom/Wind Telecom is likely to struggle to
settle disagreements between the Algerian government and its
local business, Djezzy, Naguib Sawiris, chairman of Wind unit
Orascom has said.
Speaking at a shareholders meeting, he was quoted…
The merged Vimpelcom/Wind Telecom is likely to struggle to
settle disagreements between the Algerian government and its
local business, Djezzy, Naguib Sawiris, chairman of Wind unit
Orascom has said.
Speaking at a shareholders meeting, he was quoted saying:
“I do not think Vimpelcom will succeed in negotiations in
Algeria”, by media reports.
There had been hopes that the introduction of Russian
mobile operator Vimpelcom into the equation would increase
the chances of an accord with the Algerian state, which
accuses Djezzy of owing back taxes and is trying to nationalise
it. CEO Khaled Bichara said that Djezzy accounts for more
than 80% of Orascom’s liquidity. He also reportedly confirmed
Sawiris’ promise to pursue international arbitration in the event
that the talks are unsuccessful.
Split, capital increase approved
At the same meeting, shareholders approved the company’s
proposed split and near doubling of its capital from E£7.5bn to
E£14bn to fund debt in 2014, in the event the Algerian dispute
is not settled.
