An audit firm hired by the Algerian authorities has valued local mobile operator Djezzy at US$6.5bn, according to El Khabar newspaper citing media reports.
The valuation, and ultimately the sale of a stake in Djezzy to the Algerian government, is…
An audit firm hired by the Algerian authorities has valued local mobile operator Djezzy at US$6.5bn, according to El Khabar newspaper citing media reports.
The valuation, and ultimately the sale of a stake in Djezzy to the Algerian government, is expected to end the dispute between Russia’s Vimpelcom, the owner of the mobile operator, and Algeria.
Vimpelcom acquired a majority stake in Orascom Telecom Holdings (OTH) and subsidiary Djezzy in April 2011 as part if its merger with Wind Telecom.
But 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 had agreed to sell a majority stake in Djezzy to Algeria, subject to agreement on price, signalled the dispute could finally come to a close.
However, El Khabar suggests that sale talks have now been put on hold after OTH submitted a notice of arbitration against the Algerian government with regard to Djezzy.
This came after the Algerian Court of first instance recently 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.
