A government-sponsored valuation for Djezzy, the Algerian business belonging to Orascom, could be ready by May, reports Reuters.
The Algerian state has been looking to nationalize the unit, having accused the Naguib Sawiris-owned company of tax…
A government-sponsored valuation for Djezzy, the Algerian business belonging to Orascom, could be ready by May, reports Reuters.
The Algerian state has been looking to nationalize the unit, having accused the Naguib Sawiris-owned company of tax irregularities and prevented various M&A transactions attempted by Orascom.
Currently, the uncertain situation represents a hurdle for the proposed merger between Wind Telecom and Vimpelcom.
Law firm Shearman & Sterling is advising the government on the valuation, which Orascom fears will be below market value. Such a development could allow the government to sell the asset on to a higher paying operator such as France Telecom, whose CEO Stephane Richard has indicated an interest in Algeria.
In December, OTH received a final tax notification from the Algerian Tax Department for Large-Scale Companies, which claims that Orascom Telecom Algeria owed about AD17bn (US$230m) in re-assessed tax for 2008 and 2009.
