Algeria to take over 51% of Orascom Telecom Algeria
The Algerian finance minister Karim Djoudi has yesterday conferred with the CEO of the Russian group “ Vimpelcom†M Alexander. F. Isosimov who paid a visit to Algeria to start negotiations over the future prospects of “Orascom Telecom Algeriaâ€.
- Talking on the sidelines of the setting up of the National Accounting Council, the minister has indicated the meeting with the Russian businessman is the first of its kind and is designed to discuss “ Djezzy” case, noting that the Algerian authorities are determined to take over the Algerian subsidiary of the group Orascom Telecom in keeping with the current legislation in force.
- Algeria is nearing a consensual solution likely to satisfy both parties with the new owner of the group and the Russian “ Vimpelcom” will not oppose the idea of holding 51% of the shares by the Algerian party, the minister added .
- In case where a deal is sealed at a level of $ 7 billion, the Algerian authorities will pay half of the amount, meanwhile the public treasury will receive some $ 1.8 billion representing the tax of the transaction in keeping with the investment law.
- The Algerian authorities have summoned Djezzy’s owner not to give up his shares to any other party as part of a merger or take over. The Egyptian party has committed to respect this condition during the transaction with Vimpelcom.
- The Egyptian party has set up the value of “ Djezzy” at a level of $ 7.2 billion which has been considered by the Algerian authorities as overestimated if compared to the amount paid by the Russian group to the Egyptian businessman Nadjib Sawriss to take over 51.7 % of Orascom Telecom and the Italian branch Wind Telecom valued at $ 6.6 billion.